Here are incomplete financial statements for Liam, Inc.
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LIAM, INC.
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Balance Sheet
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Assets
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Liabilities and Stockholders" Equity
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Cash
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$7,000
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Liabilities
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Inventory
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10,000
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Accounts payable
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$5,000
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Buildings
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45,000
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Stockholders" equity
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Total assets
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$62,000
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Common stock
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(a)
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Retained earnings
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(b)
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Total liabilities and
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stockholders" equity
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$62,000
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Income Statement
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Revenues
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$85,000
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Cost of goods sold
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(c)
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Salaries and wages expense
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10,000
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Net income
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$ (d)
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Retained Earnings Statement
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Beginning retained earnings
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$12,000
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Add: Net income
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(e)
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Less: Dividends
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5,000
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Ending retained earnings
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$27,000
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Instructions
Calculate the missing amounts.