Rutgersfriends Corporation (RFC) started business on December 10, 2011 by issuing 30 shares of $100 stock for $3,000. RFC decided to cook and sell delicious desserts. To do that, on December 15 , 2011, RFC bought a refrigerator for $1,000 with a five-year life span. Each dessert uses 2oz. of dough. It costs $1.00 of labor to produce one dessert. SG\&A expenses are $800 a year. RFC sells each dessert for $4.50. 1. On December 15, 2011, RFC bought 1,500 oz. of dough. Each oz. of dough cost the company $0.35. For 900oz. the company paid immediately, and for the remaining 600oz., the company paid during the following year. 2. During the first year, January 1, 2012 - December 31, 2012, RFC produced 700 desserts. RFC was able to sell 680 desserts during the first year. The payment for 650 desserts was received immediately, and for 30 desserts during the following year. 3. During the second year, January 1, 2013 - December 31, 2013, RFC bought 1,400 oz. of dough. Each ounce of dough cost the company $0.35. The company paid immediately for all dough during that year. During the second year, RFC produced 710 desserts. RFC was able to sell 700 desserts during that year. The payment for 690 desserts was received immediately, and for 10 desserts during the following year. RFC uses the straight-line depreciation method. The corporate tax rate is 34%. Taxes are paid during the following fiscal year. At the end of each year, investors decided to reinvest 50% of earnings and use the rest to pay a cash dividend. Prepare the balance sheet for RFC on December 31, 2011; December 31, 2012; and December 31, 2013. Prepare the income statement for RFC for the first and the second years. Prepare the statement of cash flow for RFC for the first and second years. Suppose Rutgersfriends' stock was traded at $120.50 a share at the end of 2012, and at $153.20 a share at the end of 2013. Given this information, find: 1. What was the amount of net income for RFC for fiscal year 2013? 2. From the statement of cash flows, what was the total net change in cash for RFC during fiscal year 2013? Use positive numbers for increases in cash positions, negative numbers for decreases. 3. Suppose the stock price for RFC was $153.20 on December 31,2013 . What was the market-to-book ratio for RFC on December 31, 2013