This exercise should be used in conjunction with Exercises 1-27A through 1-29A.

The owner of Giada Coffee Roasters Corp. seeks your advice as to whether he should cease operations or continue the business. Complete the report, giving him your opinion of net income, dividends, financial position, and cash flows during his first month of operations. Cite specifics from the financial statements to support your opinion. Conclude your memo with advice on whether to stay in business or cease operations.

Exercises 1-27A through 1-29A

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Payments of cash: Acquisition of equipment. $201,500 Cash balance, August 1, 2019..S Cash balance, August 31, 2019.. Cash receipts: Dividends. 2,800 5,300 Retained earnings August 1, 2019... Retained earnings August 31, 2019.. Utilities expense Adjustments to reconcile Issuance (sale) of stock 14,900 1,800 14,900 201,500 7,400 8,800 278,700 to owners Rent expense. 5,100 Common stock. Equipment. Office supplies. Accounts payable. Service revenue. net income to net cash provided by operations. . Salary expense. 1,400 78,500 .......