Refer to PB1-3. 

Data From PB1-3.

Assume that you are the president of Rock Point Adventures Inc. At the end of the second year of operations (June 30, 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. Is it possible to determine the amount of cash increase or decrease that would be shown in the statement of cash flows from the information presented? If not, why not.

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Bank Overdraft $ 2058 Accounts Receivable Supplies Property and Equipment Other Assets 124,579 14,356 136,897 3,857 Accounts Payable Notes Payable 58,973 74,985 Other Liabilities 3,765 Sales Revenue 143,098 Rental Revenue 34,986 Concessions Revenue 25,873 74,390 Operating Expenses Rent Expense Concessions Expenses Other Expenses Contributed Capital Retained Earnings, July 1, 2016 25,198 21,985 4,278 58,346 53,456 Dividends 50,000