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Rees Corporation 30000

Price: $1.99


Rees Corporation experienced a fire on December 31, 2014, in which its financial
records were partially destroyed. It has been able to salvage some of the records and has
ascertained the following balances.

  31-Dec-14 31-Dec-13
Cash   30,000  10,000
Receivables (net)   73,000  126,000
Inventory   200,000  180,000
Accounts payable   50,000  90,000
Notes payable   30,000  60,000
Common stock, $100 par   400,000  400,000
Retained earnings   134,000  122,000

Additional information:
1. The inventory turnover is 3.4 times.
2. The return on common stockholders’ equity is 25%. The company had no additional
paid-in capital.
3. The receivables turnover is 8.8 times.
4. The return on assets is 20%.
5. Total assets at December 31, 2013, were $650,000.

Instructions
Compute the following for Rees Corporation.
(a) Cost of goods sold for 2014.
(b) Net sales (credit) for 2014.
(c) Net income for 2014.
(d) Total assets at December 31, 2014.

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