Demonstration Problem for Chapter 9

Demonstration Problem for Chapter 9 - Demonstration Problem...

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Demonstration Problem for Chapter 9 Demonstration Problem 9-1 Analyzing Financial Statements Information below comes from the financial statements of Rosson Company. Income Statement 2008 2007 Revenues: Net Sales. ............................................ $299,000 $246,000 Other Revenues. .................................. 8,000 9,000 Total Revenues. ............................... 307,000 255,000 Expenses: Cost of Goods Sold. ............................ 172,000 138,000 ................................ 44,000 40,000 Interest Expense. ................................. 4,000 4,500 Income Tax Expense . ......................... 31,000 25,400 Total Expenses. ............................... 251,000 207,900 Income Before Extraordinary Items. ....... 56,000 47,100 Extraordinary Gain (net of tax). .............. 9,000 0 Net Income. ............................................. $ 65,000 $ 47,100 Balance Sheet Assets Current Assets: Cash. ................................................... $ 7,500 $ 12,500 Marketable Securities. ......................... 1,000 1,500 Accounts Receivable. .......................... 50,000 47,500 Inventories. .......................................... 150,000 145,000 Prepaid Expenses. ............................... 5,000 2,500 Total Current Assets. ....................... 213,500 209,000 Plant and Equipment (net). ...................... 147,000 157,000 Intangibles. .............................................. 30,500 0 Total Assets. ........................................ $391,000 $366,000 Liabilities and Stockholders’ Equity Liabilities: Current Liabilities: Accounts Payable. ........................... $ 58,000 $ 79,500
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This homework help was uploaded on 04/01/2008 for the course ACIS 2004 taught by Professor Cmeasterwood during the Fall '07 term at Virginia Tech.

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Demonstration Problem for Chapter 9 - Demonstration Problem...

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