Refer to PA1-3.

Data from PA1-3:

Required:
1. Did Nice Bite rely more on creditors or stockholders for its financing at December 31, 2016? What is your information source?

2. Did the retained earnings at December 31, 2016, arise primarily from current year earnings or earnings retained from prior years? What is your information source?

Transcribed Image Text:

$ 45,000 $ 17,200 Inventory Notes Payable Accounts Payable Accounts Receivable 22,800 23,600 Office Expense Cash (balance on January 1, 2016) Cash (balance on December 31, 2016) 103,500 14,300 Prepaid Rent Retained Earnings (beginning) 102,800 7,000 Common Stock 180,500 6,300 Dividends Salaries and Wages Expenses 35,700 Service Revenue Equipment Income Tax Expense 136,700 137,800 10,100 Utilities Expense 25,100 Interest Expense 29,500 Wages Payable 8,000 Other cash flow information: Cash from issuing common stock $ 21,000 Cash paid to reacquire common stock 23,500 Cash paid for income taxes 11,000 Cash paid to purchase long-term assets 41,000 Cash paid to suppliers and employees 83,200 Cash received from customers 137,000