Assume you are the president of High Power Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available.

Accounts Payable	$	32,600
Accounts Receivable		10,300
Cash		13,800
Common Stock		59,590
Dividends		2,000
Equipment		84,000
Notes Payable		1,410
Operating Expenses		58,900
Other Expenses		7,900
Sales Revenue		88,800
Supplies		5,500

Required:

1. 1-a. Is the company financed mainly by creditors or stockholders?

• Creditors

• Stockholders

1. 1-b. Which financial statement provides the information regarding the source of financing?

• Income Statement

• Statement of Retained Earnings

• Balance Sheet

• Statement of Cash Flows 2-a. By how much did cash increase (decrease)? 2-b. Which financial statement would report the business activities responsible for the change in cash?

  • Income Statement

  • Statement of Retained Earnings

  • Balance Sheet

  • Statement of Cash Flows

3-a. Was the company profitable?

• Yes

• No 3-b. Which financial statement provides the information regarding profitability?

• Income Statement

• Statement of Retained Earnings

• Balance Sheet

• Statement of Cash Flow 4-a. Did the companys dividends exceed its net income?

• Yes

• No 4-b. Which financial statement provides the information regarding the companys dividends?

• Income Statement

• Statement of Retained Earnings

• Balance Sheet

• Statement of Cash Flows