Assume that you are the president of APEC Aerospace Corporation. At the end of t
ID: 2594888 • Letter: A
Question
Assume that you are the president of APEC Aerospace Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available:
Final Exam x / D Final Exam xC Search Textbook Solutior Y Assume that you are the x C O ezto.mheducation.com/hm.tpx?--0.92391678235802581513071678378 The following information apples to the questlons displayed below.] Assume that you are the president of APEC Aerospace Corporation. At the end of the first year of operations December 3), the following financial data for the company are avallable Accounts Payable Accounts Recelvable Cosh Common Stock DivMdends Equipment Notes Payable Operating Expenses Other Expenses Sales Revenue Supplies $33,630 10,000 4,400 10,500 1,600 84,000 51,970 65,000 9,100 97,500 9,500 value: Required information 400 points Required: 1-a. Is the company financed mainly by creditors or stockholders? Creditors Stockholders 1-b. Which financial statement indicates this? Income Statement Statement of Retained Earnings Balance Sheet Statement of Cash Flows 1:42 AM # ^41) 12/12/2017 O Type here to search rPExplanation / Answer
1. A Creditors. Reason: as payable are more than the Common stock
B Balance sheet. Reason: as it shows requires year end balances of asset and liability
2. A Profitable: as the revenue is more than its expenses
B Income statement: Reason: it is reuires income and expenses
3. A The information required for calculation of cash flow is not given in the data
There is no way we can calculate the increase/decrease in amount of cash flows from the given data
B. Statement of cash flows
4. A The company dividend doesnot exceeds its net income The net income of the company is 97500 - 65000 - 9100 - 9500 = 13900 whereas dividend is 1600
B Statement of retained earnings.