Refer to PA1-1.

Data From  PA1-1

You are the president of High Power Corporation. At the end of the first year of operations (December 31, 2017), the following financial data for the company are available: 

Required: 

1. Evaluate whether the company was profitable. 

2. Evaluate whether the company could have paid a greater amount for dividends. 

3. Evaluate whether the company is financed mainly by creditors or shareholders. 

4. Determine the amount of cash increase or decrease that would be shown in the statement of cash flows.

Transcribed Image Text:

Cash $13,300 Accounts Receivable 9,550 5,000 Supplies Equipment Accounts Payable Notes Payable 86,000 32,087 1,160 Sales Revenue 91,000 58,700 Operating Expenses Other Expenses Contributed Capital 8,850 59,103 Dividends 1,950