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At the end of the first year of operations (December 31, 2021), the following financial data for APEC Aerospace Corporation are available:

Accounts Payable$ 33,230Accounts Receivable9,600Cash14,000Common Stock10,100Dividends1,200Equipment80,000Notes Payable51,370Operating Expenses61,000Other Expenses8,900Sales Revenue89,100Supplies9,100

When answering the questions in requirements 1-4 that follow, refer to each financial statement only once in your answers.

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

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