Refer to PA1-3.
Assume that you are the owner/operator of College Park Veterinary Clinic. At the end of the second year of operations (June 30, 2014), 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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$ 5,000 Cash Accounts Receivable 125,600 25,000 Supplies Property and Equipment 242,500 13,500 87,000 Other Assets Accounts Payable Notes Payable 150,000 37,000 250,000 185,700 Other Liabilities Sales Revenue Operating Expenses Selling and Administrative Expenses Advertising and Marketing Expenses Interest Expense 53,400 27,800 5,000 50,000 137,000 Retained Earnings, July 1, 2013 Contributed Capital Dividends 27,500