Question
Rock Hard Software and Hardware reports the following amounts at the end of the year (all amounts in $000): Cash $23,430 Depreciation Expense $4,100 Taxes
Rock Hard Software and Hardware reports the following amounts at the end of the year (all amounts in $000): Cash $23,430 Depreciation Expense $4,100 Taxes Payable $712 Mortgage Payable $43,500 Land $62,000 Treasury Stock $2,210 Sales Discounts and Returns $1,258 Accounts Receivable $5,292 Supplies Expenses $355 Bonds Payable $38,000 Accumulated Depreciation $17,250 Income Tax Expense $780 Equipment $29,300 Interest Expense $2,900 Notes Payable $11,000 Cost of Goods Sold $18,344 Current Portion of Bonds Payable $6,200 Current Portion of Mortgage Payable $2,350 Product Sales (Gross) $56,145 Utilities Expense $950 Inventory $12,500 Discount of Bonds Payable $970 Salaries Expense $14,100 Revenues from Software Licenses $1,050 Buildings $52,000 Goodwill $350 Advertising Expenses $5,340 Sales Expenses $7,200 Salaries Payable $412 Marketable Securities $3,450 Accounts Payable $5,340 PrePaid Expenses $750 Deferred Revenues $1,920 In addition, the company had common stock of $42,000 at the beginning of the year and issued an additional $3,500 during the year. The company also had retained earnings of $19,700 at the beginning of the year and declared dividends of $1,500 during the year. Using the account information above develop a Balance Sheet and Income Statement, then answer the next seven questions. The list of accounts is complete so your balance sheet should balance if you have performed the work correctly.
Cash | $23,430 | Depreciation Expense | $4,100 | Taxes Payable | $712 |
Mortgage Payable | $43,500 | Land | $62,000 | Treasury Stock | $2,210 |
Sales Discounts and Returns | $1,258 | Accounts Receivable | $5,292 | Supplies Expenses | $355 |
Bonds Payable | $38,000 | Accumulated Depreciation | $17,250 | Income Tax Expense | $780 |
Equipment | $29,300 | Interest Expense | $2,900 | Notes Payable | $11,000 |
Cost of Goods Sold | $18,344 | Current Portion of Bonds Payable | $6,200 | Current Portion of Mortgage Payable | $2,350 |
Product Sales (Gross) | $56,145 | Utilities Expense | $950 | Inventory | $12,500 |
Discount of Bonds Payable | $970 | Salaries Expense | $14,100 | Revenues from Software Licenses | $1,050 |
Buildings | $52,000 | Goodwill | $350 | Advertising Expenses | $5,340 |
Sales Expenses | $7,200 | Salaries Payable | $412 | Marketable Securities | $3,450 |
Accounts Payable | $5,340 | PrePaid Expenses | $750 | Deferred Revenues | $1,920 |
Question #1: Calculate the Net Income After Interest and Taxes
Question #2: Calculate the Total Amount of Current Assets
Question #3: Calculate the Total Amount of Current Liabilities.
Question #4: Calculate the Total Assets for Rock Hard.
Question #5: What is the total amount of the stockholders equity for Rock Hard Software and Hardware.
Question #6Continuing with Rock Hard, what is the amount of Long-Term Liabilities.
Question #7: What is Rock Hard Software and Hardware's Return on Equity (ROE). Chose the best answer from the choices below.
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