20 Cial ships ents CHAPTER ONE I THE FINANCIAL STATEMENTS P1-35A Summarized versions of the Gonzales Corporation's financial statements are given below for two years. Statement of Income Revenues Cost of goods sold Other expenses. Earnings before income taxes Income taxes (35% tax rate) Net earnings Statement of Retained Earnings Beginning balance Net earnings. Dividends.. Ending balance.. Balance Sheet Assets: Cash Capital assets. Other assets Total assets. Liabilities: Current liabilities. Notes payable and long-term debt. Other liabilities. Total liabilities (in thousands) 2020 2019 $ k $16,000 11,500 a 1,300 1,200 4,000 3,700 I 1,300 $ m $ b $ n $ 3,500 C (300) (200) $ p $ d $ 9 $ e 3,000 1,800 11,200 $ $15,000 $ $ 5,600 4,500 3,200 80 200 $ 9,100 $ f Shareholders' Equity: Common shares. Retained earnings $ 300 $ 300 u Total shareholders' equity V go 6,000 Total liabilities and shareholders' equity. $ W $ h Statement of Cash Flows Net cash provided by operating activities Net cash used for investing activities Net cash used for financing activities.. Increase (decrease) in cash.. Cash at beginning of year. Cash at end of year $ X $ 1,900 (1,000) (900) (700) (1.010) 400 y 2,010 $ Z $ Requirements 1. Determine the missing amounts denoted by the letters. 2. As Gonzales Corporation's CEO, use the financial statements to answer these questions about the company. Explain each of your answers, and identify the financial statement where you found the information. a. Did operations improve or deteriorate during 2020? b. What is the company doing with most of its income? c. How much in total resources does the company have to work with as it moves into the year 2021