need help on PA1-1 and PA1-2

retained earnings, (3) balance sheet, (4) statement of cash flows. CP1-4 Evaluating Financial Statements Refer to CP1-3. LO 1-3 Fitbit, ir Required: 1. Did Fitbit rely more on creditors or stockholders for its financing at October 1, 2016? What is your information source? 2. Was the stockholders' equity at October 1, 2016, comprised more of contributions made by stockholders directly to the company or amounts earned and retained through profitable business operations? What is your information source? GROUP A PROBLEMS connect LO 1-2 PA1-1 Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet 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 Accounts Receivable Cash Common Stock Dividends Equipment Notes Payable Operating Expenses Other Expenses Sales Revenue Supplies $32,100 9,550 13,300 59,090 1,950 86,000 1,160 58,700 7.850 90.000 5,000 Business Decisions and Financial Accounting Required: 1. Prepare an income statement for the year ended December 31. 2. Prepare a statement of retained earnings for the year ended December 31. 3. Prepare a balance sheet at December 31. PA1-2 Interpreting the Financial Statements Refer to PA 1-1. LO 1-3 Required: 1. Is the company financed mainly by creditors or stockholders? Which financial statement provides the information to answer this question? 2. By how much did cash increase (decrease)? Which financial statement would report the business activities responsible for this change in cash? 3. Was the company profitable? Which financial statement provides the information to answer this question? 4. Did the company's dividends exceed its net income? Which financial statement provides the information to answer this question? LO 1-2 PA1-3 Reporting Amounts on the Four Basic Financial Statements The following information for the year ended December 31, 2016, was reported by Nice Bite, Inc. Accounts Payable Accounts Receivable Cash (balance on January 1, 2016) Cash (balance on December 31, 2016) Common Stock Dividends Equipment Income Tax Expense Interest Expense $ 45,000 22,800 103,500 102.800 180,500 0 136,700 10.100 29,500 Inventory Notes Payable Office Expense Prepaid Rent Retained Earnings (beginning) Salaries and Wages Expenses Service Revenue Utilities Expense Wages Payable $ 17,200 23,600 14,300 7.000 6,300 35,700 137.800 25,100 8,000 Other cash flow information: Cash from issuing common stock Cash paid to reacquire common stock Cash paid for income taxes Cash paid to purchase long-term assets Cash paid to suppliers and employees Cash received from customers $ 21,000 23,500 11,000 41.000 83,200 137,000