Question 9.

Rocky Mountain Chocolate Factory Income Statement For period ended February 28, 2010 Revenues Sales $22,944,017 Franchise and royalty fees 5,492,531 Total revenues 28,436,548 Costs and expenses Cost of sales, excluding depreciation and amortization of $698,580 14,910,622 Franchise costs 1,499,477 Sales and marketing expenses 1,505,431 General and administrative expenses 2,422,147 Retail operating expenses 1,756,956 Depreciation and amortization 698,580 Total costs and expenses 22,793,213 Operating income 5,643,335 Other income (expenses) Interest income 27,210 Other, net 27,210 Income before income taxes 5,670,545 Income tax expense (2,090,468) Net income $3,580,077 Basic earnings per share $0.60 Diluted earnings per share $0.58 Weighted average common shares outstanding 6,012,717 Dilutive effect of employee stock options 197,521 Weighted average common shares outstanding, assuming dilution 6,210,238 19 Rocky Mountain Chocolate Factory Statement of Retained Earnings For period ended February 28, 2010 Retained earnings, March 1, 2009 $5,751,017 Add: Net income 3,580,077 Less: Dividends (2,407,167) Retained earnings, February 28, 2010 $6,923,927 20 Rocky Mountain Chocolate Factory Balance Sheet As of February 28, 2010 Assets Liabilities and stockholders' equity Current assets Liabilities Cash and cash equivalents $3,743,092 Current liabilities Accounts receivable, less allowance for doubtful accounts 4,427,526 Accounts payable $877,832 Notes receivable, current 91,059 Accrued salaries and wages 646,156 Inventories 3,281,447 Other accrued expenses 946,528 Deferred income taxes 461,249 Dividends payable 602,694 Other 220,163 Deferred income 220,938 Total current assets $12,224,536 Total current liabilities $3,294,148 Property and equipment, net $5,186,709 Deferred income taxes 894,429 Other Assets Total liabilities $4,188,577 Notes receivable, less current portion $263,650 Equity Goodwill, net 1,046,944 Common stock $180,808 Intangible assets, net 110,025 Additional paid-in capital 7,626,602 Other 88,050 Retained earnings 6,923,927 Total other assets $1,508,669 Total stockholders' equity $14,731,337 Total Assets $18,919,914 Total liabilities and stockholders' equity $18,919,914 21 Case 4: Fraud Sc

71. Which of the following is a ______ that businesses receive from using the ______.

72. An advantage to a business that uses ______ capabilities are that it allows employees to share the _____ information with ____.

73. Ingrid is able to access information from her desktop publishing software, word-processing software, and spreadsheet software at the same time on her personal computer. This is an example of an operating system with __________ capabilities.

74. Melanie is putting a copy of each valuable business record in a building far away from her company. She is practicing which part of disaster planning?

75. Which of the following is a type of business ____ that a firm can use to track its customers' _____ habits:

76. A main reason that environmental _____ is important is so that businesses can be aware of ______.

77. Which of the following helps the operations function to control costs and increase productivity:

78. Which of the following is one way that workplace ______ are costly to employees:

79. Who is usually responsible for _____ a project?

80. Do businesses such as _____ and dry cleaners ____ in production?