Refer PA 1-1
Accounts Payable………………………. $ 32,100
Accounts Receivable……………………… 9,550
Cash……………………….……………… 13,300
Common Stock…………………………… 59,090
Dividends………………………………….. 1,950
Equipment………………………………... 86,000
Notes Payable……………………………… 1,160
Operating Expenses………………………. 58,700
Other Expenses…………………………….. 7,850
Sales Revenue……………………………. 90,000
Supplies……………………………………. 5,000
Required:
1. Is the company financed mainly by creditors or stockholders? Which financial statement indicates this?
2. By how much did cash increase (decrease)? Which financial statement would report the reasons for this change in cash?
3. Was the company profitable? Which financial statement indicates this?
4. Did the company’s dividends exceed its net income? Which financial statement indicates this?