This exercise should be used in conjunction with Exercises 1-36B through 1-38B. The owner of Croyden Copy Center now seeks your advice as to whether he should cease operations or continue the business. Complete the report giving him your opinion of net income, dividends, financial position, and cash flows during his first month of operations. Cite specifics from the financial statements to support your opinion. Conclude your memo with advice on whether to stay in business or cease operations.

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Payments of cash: Acquisition of equipment. $410,000 Cash balance, July 1, 2013.... S 0 Dividends July 1, 201:3 July 31, 2013 Cash balance, July 31, 2013 Cash receipts: 4,800 11,100 Retained earnings Retained earnings Utilities expense Issuance (sale) of stock Rent expense Equipment 0 48,800 2,500 48,800 410,000 Office supplies 14,800 provided by operations....2,500 Accounts payable.17,300 ue...544,600 to owners 10,500 Adjustments to reconcile net income to net cash Salary expense 157,000 Service revenue