Refer to PB1-3.
Assume that you are the president of Rock Point Adventures Inc. At the end of the sec- ond 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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$ 2,058 Bank Overdraft Accounts Receivable 124,579 Supplies Property and Equipment 14,356 136,897 Other Assets Accounts Payable Notes Payable Other Liabilities Sales Revenue Rental Revenue 3,857 58,973 74,985 3,765 143,098 34,986 Concessions Revenue 25,873 Operating Expenses Rent Expense Concessions Expenses Other Expenses Contributed Capital Retained Earnings, July 1, 2013 Dividends 74,390 25,198 21,985 4,278 58,346 53,456 50,000