Mary began a business, and after collecting $30,000 from an equity investor and borrowing $15,000 from a bank, she purchased a piece of land for $40,000. During the year, she leased the land to Karl and received $12,000 in cash, paying $14,000 cash for expenses. She paid a $1,000 dividend to the equity investor at year-end.
Prepare an income statement, a statement of shareholders' equity, a balance sheet, and a statement of cash flows for the period. Evaluate Mary's decision to pay the $1,000 dividend.