Refer to PA1-3.
PA1-3
The following information for the year ended December 31, 2010 was reported by Coinstar,
Inc. -a company that began as a student project and now is known for its Redbox DVD rental kiosks. Amounts are in millions of dollars.

Other cash flow information:
Cash outflows for other financing activities...................................... $ 11
Cash paid for kiosk operations...................................................... 887
Cash paid to suppliers and employees............................................. 238
Repayments of borrowings......................................................... 111
Cash received from customers................................................... 1,430
Cash received from sale of long-term assets.......................................27
Cash paid to purchase long-term assets............................................173
Dividends paid in cash................................................................. 0
Required:
1. Did Coinstar rely more on creditors or stockholders for its financing at December 31, 2010? What is your information source?
2. Did the retained earnings at December 31, 2010, arise primarily from current year earnings, earnings retained from prior years, or approximately equal amounts of both? What is your information source?

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Accounts Payable Accounts Receivable Cash (balance on December 31, 2009) Cash (balance on December 31, 2010) Contributed Capital Dividends S 270 Notes Payable 377 460 26 Other Assets 146 Other Liabilities 183 Other Revenues 341 Prepaid Rent 95 28 445 51 1,436 251 97 29 Retained Earnings (beginning) 40 Service Revenue Inventories Kiosk Expenses Legal Expenses ,001 Utilities Expense 5 Wages Payable