Rees Corporation experienced a fire on December 31, 2014, in which its financial records were partially destroyed.
Question:
Rees Corporation experienced a fire on December 31, 2014, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances.
Additional information:
1. The inventory turnover is 3.4 times.
2. The return on common stockholders’ equity is 25%. The company had no additional paid-in capital.
3. The receivables turnover is 8.8 times.
4. The return on assets is 20%.
5. Total assets at December 31, 2013, were $650,000.
Instructions
Compute the following for Rees Corporation.
(a) Cost of goods sold for 2014.
(b) Net sales (credit) for 2014.
(c) Net income for 2014.
(d) Total assets at December 31, 2014.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso