1-2A Shoestop, Inc. operates discounts shoes stores. Condensed versions of the company's financial statements, with certain items omitted, follow for two recent years. 2009 (Thousands) $88,412 A 22,826 13,564 9,262 1.581 $ B $9.987 (455) D 2010 Statement of Income Revenues $ K Cost of goods sold 74,564 Gross Margin 20,185 Other expense L Income before income taxes 4,346 Income taxes 1,606 Net income $ M Statement of Retained Earnings Beginning balance $ N Net income Dividends (559) Ending balance $ Balance Sheet Assets: Cash $ Property, Plant, and equipment 23,894 Other assets R Total assets $ S Liabilities Current liabilities $ T Long-term debt and other 11.331 liabilities Total liabilities 22,785 Shareholders' Equity Common Stock $362 Retained earnings U Total shareholders' equity V Total liabilities and W shareholders' equity Statement of Cash Flows Net cash provided by operating X activities Net cash used for investing activities (3,332) Net cash from financing activities 987 Increase (decrease) in cash 38 Cash at beginning of year Y Cash at end of year Z $ E 20,874 16,900 $37.819 Eklund $9,973 10,120 F $ 513 G 17.726 $ H $2,906 (3,792) 911 I 20 J Required 1. Determine the missing amounts denoted by the letters. 2. Use the financial statement to answer these questions about the company. Explain each of your answers. a. Did operations improve or deteriorate during 2010? b. What is the company doing with most of its income-retaining it for use in the business or using it for dividends? c. How much in total resources does the company have to work with as it moves into 2011? d. At the end of 2009, how much did the company owe outsiders? At the end of 2010, how much did the company owe? e. What is the company's major source of cash? What is opinion of the company's ability to generate cash? How is the company using most of its cash? f. Is the company growing or shrinking? g. Would you invest in this company