Santo 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.

December 31, 2014 December 31, 2013 Cash $ 30,000 $ 10,000 Accounts receivable (net) 72,500 126,000 Inventory 200,000 180,000 Accounts payable 50,000 90,000 Notes payable 30,000 60,000 Common stock, $100 par 400,000 400,000 Retained earnings 113,500 101,000 Additional information:

1 The inventory turnover is 3.8 times.

2 The return on common stockholders’ equity is 22%. The company had no additional paid-in capital.

3 The accounts receivable turnover is 11.2 times.

4 The return on assets is 18%.

5 Total assets at December 31, 2013, were $605,000.

Instructions Compute the following for Santo Corporation.

(a) Cost of goods sold for 2014.

(b) Net credit sales for 2014.

(c) Net income for 2014.

(d) Total assets at December 31, 2014.

AppendixLO1