At the end of the first year of operations $($December $31),$ the following financial data for APEC Aerospace Corporation are available:

Accounts Payable $ $34,030$

Accounts Receivable $10,400$

Cash $14,800$

Common Stock $10,900$

Dividends $1,200$

Equipment $88,000$

Notes Payable $52,570$

Operating Expenses $69,000$

Other Expenses $9,300$

Sales Revenue $105,100$

Supplies $9,900$

Required:

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

multiple choice $1$

Creditors

Stockholders

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

multiple choice $2$

Income Statement

Statement of Retained Earnings

Balance Sheet

Statement of Cash Flows