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 2017?
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 2018?
d. At the end of 2016, how much did the company owe outsiders? At the end of 2017, 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) 2017 2016 Statement of Income Revenues Cost of goods sold Other expenses Earnings before income taxes Income taxes (35% tax rate) Net earnings Statement of Retained Earnings Beginning balance Net earnings $16,000 11,500 1,300 4,000 1,200 3,700 1,300 $ 3,00 (300) (200) Ending balance Balance Sheet 9 3,000 Capital assets Other assets Total a 1,800 11,200 $15,000 Liabilities: Current liabilities Notes payable and long-term debt Other liabilities $ 5,600 3,200 200 4,500 Total liabilities Shareholders' Equity: Common shares. Retained earnings 9,100 S 300 S 300 ul Total shareholders' equity 6,000 Total liabilities and shareholders' equity Statement of Cash Flows Net cash provided by operating activities (1,000) (700) 400 $ 1,900 (900) (1.010) Net cash used for investing activities Net cash used for financing activities Increase (decrease) in cash. Cash at beginning of year 2,010 Cash at end of year