Answer the following questions:

a. How well did ShineBrite perform during its fi rst month of operations?

b. Where does ShineBrite stand fi nancially at the end of April?

❙ Requirement 2

a. ShineBrite performed rather well in April. Net income was $7,300—very good in relation to service revenue of $10,000. The company was able to pay cash dividends of $2,100.

b. ShineBrite ended April with cash of $33,300. Total assets of $57,000 far exceed total liabilities of $1,800. Shareholders’ equity of $55,200 provides a good cushion for borrowing. The business’s fi nancial position at April 30, 20X6, is strong.