This exercise should be used in conjunction with exercises E1-24 through E1-26. The owner of Cober Printing Inc. now seeks your advice as to whether the company should cease operations or continue operating. Write a report giving the owner your opinion of operating results, dividends, financial position, and cash flows during the company's first month of operations. Cite specifics from the financial statements to support your opinion. Conclude your report with advice on whether to stay in business or cease operations.

Exercises E1-24 through E1-26

1-24

Assume Cober Printing Inc. ended the month of July 2020 with these data:

{Requirement}
Prepare the income statement and the statement of retained earnings of the company for the month ended July 31, 2020.
1-25

Refer to the data in the preceding exercise. Prepare the balance sheet of the company at July 31,2020 1-26

Refer to the data in exercise E1-24. Prepare the statement of cash flows of the company for the month ended July 31, 2020. Draw arrows linking the pertinent items in the statements you prepared for exercises E1-24 through E1-26.

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Payments of cash: Acquisition of equipment Dividends........ Retained earnings at July 1, 2020. Retained earnings at July 31, 2020... Utilities expense. Adjustments to reconcile net income to cash provided by operations. Salary expense.. Cash balance July 1, 2020. Cash balance July 31, 2020. Cash receipts: $36,000 Issuance (sale) of shares to 2,000 owners..... $35,000 0 Rent expense 700 ? Common shares 35,000 200 Equipment 36,000 Office supplies expense. 1,200 3,200 Accounts payable....... 3,200 +,000 Service revenue 14.000 0 8,100