Refer to PA1-3. 

Data From PA1-3.

Assume that you are the owner/operator of the College Park Veterinary Clinic. At the end of the second year of operations (June 30, 2017), 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 in dividends. 

3. Evaluate whether the company is financed mainly by creditors or shareholders. 

4. Is it possible to determine the amount of cash increase or decrease that would be shown in the statement of cash flows from the information presented? If not, why not?

Transcribed Image Text:

$ 5,000 125,600 25,000 Cash Accounts Receivable Supplies Property and Equipment 242,500 13,500 87,000 150,000 Other Assets Accounts Payable Notes Payable Other Liabilities 37,000 Sales Revenue 250,000 Operating Expenses Selling and Administrative Expenses Advertising and Marketing Expenses Interest Expense Retained Earnings, July 1,2016 Contributed Capital 185,700 53,400 27,800 5,000 50,000 137,000 Dividends 27,500