PB1-3 Reporting Amounts on the Four Basic Financial Statements LO 1-2 Q Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2018. Accounts Payable Accounts Receivable Cash (balance on September 1, 2017) Cash (balance on August 31, 2018) Common Stock Dividends Equipment Notes Payable $145,000 15,000 75,000 80,000 100,000 10,000 755,000 30,000 Office Expenses Prepaid Rent Retained Earnings (beginning) Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Supplies Utilities Expense $ 95,000 50,000 410,000 955,000 170,000 1,660,000 25,000 530,000 Other cash flow information: Additional investments by stockholders Cash paid to purchase equipment Cash paid to suppliers and employees Repayments of borrowings Cash received from customers Cash received from borrowings Dividends paid in cash $ 34,000 40,000 1,490,000 155,000 1,661,000 5,000 10,000 Required: Prepare the four basic financial statements for the fiscal year ended August 31, 2018. PB1-4 Evaluating Financial Statements LO 1-3 @ Refer to PB1-3. Required: 1. Did Cheese Factory's cash balance increase or decrease during the year ended August 31, 2018? Which financial statement shows the reasons for this change? 2. What would Cheese Factory's 2018 net income have been had it given a 5 percent pay increase to all employees on September 1, 2017? Which financial statement did you use to answer this