Question

Question 11 Financial Statement Problem (Advanced) -- Rogers Tru-Make Manufacturing Co

Rogers Tru-Make Manufacturing Co.

Cash $6,609

Accounts Payable $5,200

Ending FGI $5,049

Notes Payable $2,150

Pre-Paid Expenses $90

Ending WIP Inventory $1,325

Buildings and Equipment $12,500

Land $6,000

Ending Materials Inventory $2,000

Office Maintenance $75

Utilities $57

Mortgage Payable $4,700

Retained Earning (Ending) ?

Retained Earning at Beginning of Period $12,200

Rent $722

Discounts on Notes Payable $175

Accounts Receivable $7199

Treasury Stock $750

Net Sales $28,455

Accumulated Depreciation $3,750

Allowance for Doubtful Accounts $800

Beginning FGI $3,900

Depreciation Expense $725

Interest Expense $130

Short Term Marketable Securities $250

Income Tax Expense $1448

Wages Payable $22

Wages Expense $2,100

Cost of Good Manufactured $19,222

Dividends Payable $1,500

Dividends Declared $1,500

Common Stock $8,000

Indicated above is accounting information for Rogers Tru-Make Manufacturing Co as of the period ending December 31, 2017. All information shown is in $000. Using the information shown above please develop a Balance Sheet and Income Statement for the period ending December 31, 2017.

Answer 1

Roger Tru-Make Manufacturing Co.
Statement of Cost of Goods Sold
For the Period Ending Dec 31, 2017
Finished Goods Inventory, Beginning	3,900.00
Cost of Goods Manufactured	19,222.00
Cost of Goods Available for Sale	23,122.00
Finished Goods Inventory, Ending	(5,049.00)
Cost of Goods Sold	18,073.00
Roger Tru-Make Manufacturing Co.
Income Statement
For the Period Ending Dec 31, 2017
Sales Revenue
Net Sales		28,455.00
Less: Cost of Goods Sold		18,073.00
Gross Profit		10,382.00
Opearting Expenses
Office Maintenance	75.00
Utilities	57.00
Rent Expense	722.00
Depreciation expense	725.00
Wages Expense	2,100.00
Total Operating Expenses		3,679.00
Net Operating Income		6,703.00
Other Income & Expenses
Interest Exp.		130.00
Net Income before Tax		6,573.00
Income Tax Expense		1,448.00
Net Income		5,125.00
Roger Tru-Make Manufacturing Co.
Balance Sheet
As on Dec 31, 2017
Current Assets
Cash		6,609.00
Inventory:
Material Inventory	2,000.00
WIP	1,325.00
Finished Goods	5,049.00	8,374.00
Accounts Receivable	7,199.00
Allowance for Doubtful Accounts	(800.00)	6,399.00
Short Term Marketable securities		250.00
Pre-Paid Expenses		90.00	21,722.00
Property, Plant & Equipment
Land		6,000.00
Buildings & Equipment	12,500.00
Accumulated Depreciation	(3,750.00)	8,750.00	14,750.00
Total Assets			36,472.00
Liabilities & Stockholders' Equity
Liabilities
Current Liabilities
Accounts Payable		5,200.00
Wages Payable		22.00
Dividends Payable		1,500.00	6,722.00
Long-Term Liabilities
Notes Payable	2,150.00
Discount on Notes Payable	(175.00)	1,975.00
Mortgage Payable		4,700.00	6,675.00
Total Liabilities			13,397.00
Stockholders' Equity
Common Stock		8,000.00
Retained Earnings		15,825.00
Treasury Stock		(750.00)
Total Stockholders' Equity			23,075.00
Total Liabilities & Stockholders' Equity			36,472.00
Statement of Retained Earnings
For the Period Ending Dec 31, 2017
Beginning Balance	12,200.00
Net Income	5,125.00
Sub-total	17,325.00
Dividends Declared	(1,500.00)
Ending Balance	15,825.00