Required informotion E1-4 (Static) Completing a Balance Sheet and Inferring Net Income [LO 1-2, LO 1-3] [The following information applies to the questions displayed below] Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $49,000 cash to start the business and recelved 4,000 shares of stock. The store completed its first year of operations on December 31,2020 . On that date, the following financial items for the year were determined: cash on hand and in the bank, $47,500, amounts due from customers from sales of books, $26,900, equipment, $48,000, amounts owed to publishers for books purchased, $8,000, one-year notes payable to a local bank for $2,850. No dividends were declared or paid to the stockholders during the year: E1.4 (Static) Part 2 2. Using the retained earnings equation and an opening balance of $0, work backwards to compute the amount of net income for the year ended December 31, 2020