LO4 E1-27A. (Learning Objective 4: Construct an income statement and a statement of retained earnings) Assume the Giada Coffee Roasters Corp. ended the month of August 2019 with these data: 0 to owners Payments of cash: Acquisition of cquipment ....... $201,500 Dividends........... 2,800 Retained earnings August 1, 2019.... Retained earnings August 31, 2019.. Utilities expense 5,100 Adjustments to reconcile net income to net cash provided by operations........... 1,400 Salary expense...... 78,500 ? Cash balance, August 1, 2019.... $ 0 Cash balance, August 31, 2019.. 5,300 Cash receipts: Issuance (sale) of stock 14,900 1,800 Common stock 14,900 Equipment.... 201,500 Office supplies.. 7,400 Accounts payable 8,800 Service revenue. 278,700 Rent expense LO4 LO4 Requirement 1. Prepare the income statement and the statement of retained earnings for Giada Coffee Roasters Corp., for the month ended August 31, 2019. E1-28A. (Learning Objective 4: Construct a balance sheet) Refer to the data in Exercise 1-27A. Requirement 1. Prepare the balance sheet of Giada Coffee Roasters Corp., for August 31, 2019. E1-29A. (Learning Objective 4: Construct a statement of cash flows) Refer to the data in Exercises 1-27A and 1-28A. Requirement 1. Prepare the statement of cash flows of Giada Coffee Roasters Corp., for the month ended August 31, 2019. Using Exhibit 1-11 as a model, show with arrows the relationships among the income statement, statement of retained earnings, balance sheet, and statement of cash flows. E1-30A. (Learning Objective 4: Evaluate business operations through the financial statements) 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. LO4