Reference no: EM132933935

Ripley incurred, during that same year, salary expense of $35 million, rent expense of $21 million, and utilities expense of $22 million. Ripley declared and paid dividends of $17 million during the year. At December 31, 2018, Ripley had cash of $155 million, accounts receivable of $45 million, property and equipment of $36 million, and other long-term assets of $20 million. At December 31, 2018, the company owed accounts payable of $57 million and had a long-term note payable of $34 million. Ripley began 2018 with a balance in retained earnings of $76 million. At December 31, 2018, Ripley had total stockholders' equity of $165 million, which consisted of common stock and retained earnings. Ripley has a year-end of December 31.

Problem 1: Prepare the income statement (with a proper heading) for 2018.

Problem 2: Prepare the statement of retained earnings (with a proper heading) for 2018