This exercise should be used in conjunction with Exercises 1-36B through 1-38B.

The owner of Carson Copy Center now 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.

Payments of cash: Acquisition of equipment$410,000 Cash balance, June 30, 2010 Dividends June 30, 2011 July 31, 2011 4,100 Cash balance, July 31, 2011 Cash receipts: ....9,500 Retained earnings Retained earnings Utilities expense Issuance (sale) of stock 54,200 2,900 54,200 410,000 15,000 17,900 542,200 to owners Rent expense Common stock Equipment Office su 10,800 Adjustments to reconcile net income to net cash provided by operations.2,900 Accounts payable... Salary expense 162,000 Service revenue