Instructions In each situation, state whether the decision-maker would be most likely to place primary emphasis on information provided by the income statement, balance sheet, or statement of cash flows. In cach case provide a brief justification for your choice. Choose only one financial statement in cach case. -On June 1, 2017, Elite Service Co. was started with an initial investment in the company of $22,100 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first month of operations: $ 4,600 Notes payable Cash $12,000 Accounts receivable 4,000 Accounts payable 500 7,500 Supplies expense Service revenue 1,000 Supplies 2,400 Maintenance and repairs expense 600 Advertising expense 400 Utilities expense 300 26,000 Salaries and wages expense Equipment 1,400 Common stock 22,100 In June, the company issued no additional stock but paid dividends of $1,400. Instructions (a) Prepare an income statement and a retained earnings statement for the month of June and a balance sheet at June 30, 2017. number to let you know you are on the right track. $ 3,800 Net income Ret. eamings $ 2,400 Tot. assets $37,000 (b) Briefly discuss whether the company's first month of operations was a success. (c) Discuss the company's decision to distribute a dividend. erved A nulelne of tak wt .. PROBLEM 1-3A Prepare Financial Statements and Discuss Results (a) Elite Service Co. INCOME STATEMENT Complete the date line > Check figure: Net Income = $3,800 Elite Service Co. RETAINED EARNINGS STATEMENT Complete the date line + Beginning Retained Earnings, June 1, 2017 Check figure: Retained Earnings, June 30, 2017 - $2,400 Continued on following page CHAPTER 1 Page 6 PROBLEM 1-3A Continued Elite Service Co. BALANCE SHEET Complete the date line > Check Figure: Total Assets = $37,000 (b) Briefly discuss whether the company's first month of operations was a success. (c) Discuss the company's decision to distribute a dividend