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Summarized versions of the Encino Corporation's financial statements are given for two years (Click the icon to view the financial statements.) Requirements Requirement 1. Determine the missing amounts denoted by the letters Calculate the missing amounts. When calculating the answers you may need to solve for a missing value farther down the statement and work backward (Enter amounts in thousands as provided to you in the problem statement. Enter decreases in cash with parentheses or a minus sign.) 2020 2019 Income Statement $ 15,500 Revenues Cost of goods sold 11010 1340 1 240 Other expenses Eamings before income taxes 4 500 3.740 1,309 Income taxes (35% tax rate) Net earnings Statement of Retained Earnings Beginning balance Net earnings IS 3,500 Dividends (300) (205) Ending balance Balance Sheet Assets Cash Capital assets 2,200 1.875 11,306 Other assets $ 15,171 Total assets Liabilities: Current liabilities 5,620 Notes payable and long-term debt 4400 3,320 230 Other liabilities 110 Total liabilities $ 9,470 Shareholders' Equity: Common shares 275 $ 275 Retained earnings Total shareholders' equity Total liabilities and shareholders equity 6.001 Statement of Cash Flows $ 1,900 Net cash provided by operating activities Net cash used in investing activities Net cash used in financing activities Increase (decrease) in cash Cash at beginning of year (950) (690) (880) (1,060) 350 2030 Cash at end of year Requirements 1. Determine the missing amounts denoted by the letters. 2. As Encino 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? d. At the end of 2019, how much did the company owe creditors? At the end of 2020, how much did the company owe? Is this trend good or bad in comparison to the trend in assets? e. What is the company's major source of cash? Is cash increasing or decreasing? What is your opinion of the company's ability to generate cash? x Financial statements fi 2020 2019 Income Statement (In Thousands) Revenues $* $ 15,500 mis H d Cost of goods sold 11,010 a Other expenses 1,340 1.240 Earnings before income taxes 4,500 3,740 Income taxes (35% tax rate) 1,309 $ m S b Net earnings Statement of Retained Earnings Beginning balance Net earnings n$ 3.500 O Dividends (300) (205) Ending balance Balance Sheet SP $d Assets: Cash Sa Se Print Done Calculator SMC