Familiarize yourself with the information below pertaining to RCS income statement and balance sheet. As you review them, make sure your understand the meaning of each account, you know the position of each on either the income statement or the balance sheet, and how this information can be used to derive the major sub-categories or balances of the respective statements. 11. Based on the below information for RCS, Inc., which you were asked to work on, what is the amount of RCS gross profit? Cost of goods sold 2,433,000 Depreciation 78,000 Gross sales 3,210,000 Advertising expenditures 68,000 Interest expenses 64,000 Management salary 240,000 Material purchase 2,425,000 Repair and maintenance costs 22,000 Returns and allowances 48,000 Taxes 51,000 12. From the following balance sheet accounts for RCS, Inc. for the year ending Dec 31, 2006, determine the book value of long-term fixed assets (or PP&E): Gross fixed assets 284,950 Inventory 136,500 Accrued expenses 11,850 Accumulated depreciation 82,310 Notes payable 32,570 Preferred stock 8,000 Retained earnings 89,280 Current portion of L-T debt 4,080 Long-term debt 134,300 Accounts receivable 105,770 Additional paid-in capital 71,600 Accounts payable 50830 Common stock ($0.20 par) 60,000 Cash 17,600