You are preparing for your CFE final exams and your wonderful instructor, William that taught ACCT 1510 is helping you prepare for the exam. He wants you to review the Statement of Financial Position and Statement of Earnings of Rogerless Inc. as of May 31, 2022 (Exhibit 1 and 2). and prepare a Statement of Cash Flows using the indirect method. The company is a private enterprise and chooses to follow ASPE. William also wants you as part of the preparation process to evaluate the results from the Statement of Cash Flows, specifically identify the changes that occurred, if any. In addition, he wants you to also do an analysis using the analytical tools you have learned in the past. They include the following: Current Ratio Debt to Equity Ratio Accounts Receivable Turnover Ratio Inventory Turnover Ratio ROE Additional Data: 

a. Bought equipment for cash $12,000 

b. Paid $6,000 on Long Term Debt 

c. Issued new shares for $16,000 cash 

d. No dividends were declared 

e. Other expenses included depreciation, $5,000; wages, $20,000; taxes $6,000; other, $$6,800

 f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume these expenses were fully paid in cash. 

g. Accounts Receivable for 2020 is $35,750, and total shareholders' equity for 2020 is $111,100.

 

Assets Cash Accounts Receivable Inventory Long-Term Assets Equipment Accumlulated Depreciation Total Assets Current Liabilities Accounts Payable Salaries Payable Long-term Liabilites Notes Payable Total Liabilities Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity Rogerless inc. Statement of Financial Position 2022-05-31 (in 000's) Total Liabilities and Shareholders' Equity 2022 $ 31,200 55,000 48,000 134,200 150,000 40,000 $110,000 $ 244,200 $ 39,000 $ 2,000 $ 41,000 50,000 $ 91,000 96,000 57,200 $ 153,200 $ 244,200 138,000 31,000 2021 $ 21,000 37,500 33,000 91,500 $ 107,000 $ 198,500 $ 28,500 $ 1,800 $ 30,300 44,000 $ 74,300 80,000 44,200 $ 124,200 $ 198,500