Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Accounting

Authors: Frederick D. S. Choi, Gary K. Meek

7th Edition

0136111475, 9780136111474

More Books

Students also viewed these Accounting questions

Question

What does product life cycle mean?

Answered: 1 week ago