Refer to PA1-1.
Assume that you are the president of High Power Corporation. At the end of the first year of operations (December 31, 2014), the following financial data for the company are available:

Required
1. Evaluate whether the company was profitable.
2. Evaluate whether the company could have paid a greater amount for dividends.
3. Evaluate whether the company is financed mainly by creditors or shareholders.
4. Determine the amount of cash increase or decrease that would be shown in the statement of cash flows.

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Cash Accounts Receivable $13,300 9,550 5,000 86,000 Supplies Equipment Accounts Payable Notes Payable 32,087 1,160 91,000 Sales Revenue Operating Expenses Other Expenses Contributed Capital Dividends 58,700 8,850 59,103 1,950