Summarized versions of the Gonzales Corporation's financial statements are given below for two years.

Requirements
1. Determine the missing amounts denoted by the letters.
2. As Gonzales 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 2014?
b. What is the company doing with most of its income-retaining it for use in the business or using it for dividends?
c. How much in total resources does the company have to work with as it moves into the year 2015?
d. At the end of 2013, how much did the company owe outsiders? At the end of 2014, 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?

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(in thousands) 2014 2013 Statement of Income $ k 16,000 Cost of goods sold Other expenses Earnings before income taxes Income taxes (35% tax rate) Net earnings 11,500 1,300 4,000 1,200 3,700 1,300 Statement of Retained Earnings Beginning Net earnings Dividends Ending balance Balance Sheet Assets: S n 3,500 (300) (200) Cash Capital assets Other assets 3,000 1,800 11,200 s $15,000 Total assets Liabilities: Current liabilities Notes payable and long-term debt Other liabilities t 5,600 3,200 200 4,500 80 $ 9,100 $ Total liabiliti Shareholders' Equity: $ 300 300 Common Retained earnings ul Total shareholders' equity Total liabilities and shareholders' equity 6,000 Statement of Cash Flows Net cash provided by operating Net cash used for investing activities Net cash used for financing activities $x$1,900 (900) (1.010) activities (1,000) (700) 400 Increase (decrease) in Cash at beginning of year Cash at end of year 2,010