This exercise should be used in conjunction with Exercises 1-24A through 1-26A. The owner of Dogan Copy Center 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 ceaseoperations.

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Payments of cash Acquisition of equipment... $460,000 Cash balance, July 1, 2012 $ Dividends Retained earnings July 1, 2011 Retained earnings July 31, 2012 Utilities expense 4,700 Cash balance, July 31, 2012....10,300 Cash receipts: Issuance (sale) of stock o owners...105,300 2,700 105,300 Equipment. 460,000 14,700 17,400 540,200 Rent expense Common st 10,500 Adjustments to reconcile net income to net cash provided by operations Office suppl Accounts payable Service revenue.. 2,700 160,000 Salary expense