Refer to PB1-1.

Data From PB1-1.

Assume that you are the president of Aerospace Explorations. 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 in 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 $13,900 9,500 9,000 86,000 30,277 Accounts Receivable Supplies Equipment Accounts Payable Notes Payable Sales Revenue Operating Expenses Other Expenses Contributed Capital Dividends 1,220 94,000 60,000 8,850 62,853 1,100