d Requirements 1. Determine the missing amounts denoted by the letters. 2. As Encino Corporation's CEO, use the financial statements to answer these questions about the company. Explain each of your answers, and identify the financial statement where you found the information. a. Did operations improve or deteriorate during 2020? b. What is the company doing with most of its income? c. How much in total resources does the company have to work with as it moves into the year 2021? d. At the end of 2019, how much did the company owe creditors? At the end of 2020, how much did the company owe? Is this trend good or bad in comparison to the trend in assets? e. What is the company's major source of cash? Is cash increasing or decreasing? What is your opinion of the company's ability to generate cash? Print Done Summarized versions of the Encino Corporation's financial statements are given for two years. (Click the icon to view the financial statements.) Requirement Requirement 1. Determine the missing amounts denoted by the letters. Calculate the missing amounts. When calculating the answers, you may need to solve for a missing value farther down the statement and work backward. (Enter amounts in thousands as provided to you in the problem statement. Enter decreases in cash with parentheses or a minus sign.) Income Statement 2020 2019 Revenues 15,250 Cost of goods sold 11,030 Other expenses 1,280 1,180 Summarized versions of the Encino Corporation's financial statements are given for two years. (Click the icon to view the financial statements.) Requirements Earnings before income taxes 4,900 3,660 1,281 Income taxes (35% tax rate) Net earnings Statement of Retained Earnings Beginning balance Net earnings Dividends ce Ending balance Balance Sheet 2,660 (301) (207) Assets: Cash Capital assets 2,000 1,800 Other assets 10,487 $ 14,407 Total assets ce Liabilities: Current liabilities Notes payable and long-term debt Other liabilities Total liabilities EA 69 $ 5,680 4,400 3,360 90 210 9.600 Total liabilities Shareholders' Equity: Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' 9,600 L $ 325 $ 325 5,157 equity Statement of Cash Flows Net cash provided by operating activities $ 1,920 Net cash used in investing activities (950) (900) Net cash used in financing activities (650) (990) Total shareholders' equity Total liabilities and shareholders' 5,157 equity Statement of Cash Flows Net cash provided by operating activities 1,920 Net cash used in investing activities (950) (900) Net cash used in financing activities Increase (decrease) in cash Cash at beginning of year Cash at end of year (650) (990) 440 2,090 Financial statements Income Statement Revenues 2020 2019 (In Thousands) $k$ 15,250 Cost of goods sold 11,030 a 1,280 1,180 Other expenses Earnings before income taxes 4,900 3,660 1,281 Income taxes (35% tax rate) Net earnings Statement of Retained Earnings Beginning balance Net earnings $ m $ b n $ 2,660 C Financial statements Dividends (301) (207) Ending balance $ p $ d Balance Sheet Assets: Cash $ q $ e Capital assets 2,000 1,800 r 10,487 Other assets $s $ 14,407 Total assets Liabilities: Current liabilities $t $ 5,680 Notes payable and long-term debt 4,400 3,360 Other liabilities Total liabilities Shareholders' Equity: 90 210 $ 9,600 $ f Common shares 69 325 $ 325 Retained earnings u g Total shareholders' equity V 5,157 Total liabilities and shareholders' $w $h equity Statement of Cash Flows Net cash provided by operating activities x $ 1,920 Net cash used in investing activities (950) (900) Net cash used in financing activities. (650) (990) Common snares Retained earnings 3255 325 u g V 5,157 Total shareholders' equity Total liabilities and shareholders' equity $ w $ h Statement of Cash Flows Net cash provided by operating activities x $ 1,920 Net cash used in investing activities (950) (900) (650) (990) Net cash used in financing activities Increase (decrease) in cash Cash at beginning of year Cash at end of year 440 y 2,090 $ z $j