Question

Riley Incorporated reports the following amounts at the end of the year (all amounts in $000):

Cash Depreciation Expense Taxes Payable	$ 16,140 3,210 1,020		Product Revenues Mortgage Payable Treasury Stock	$ 112,500 38,000 650
Buildings Land Current Portion of Notes and Mortgages Payable	79,000 40,000 2,200		Salaries Accumulated Depreciation	62,800 21,730
Accounts Payable Net Accounts Receivable	18,500 23,500		Equipment Income Tax Expense Discount on Notes Payable	42,000 3,650 7,950
Interest Expense Notes Payable Utilities	4,000 25,650 350		Inventory Costs of Good Sold License Revenues	6,400 17,400 250
Advertising Expense Pre-Paid Expenses	11,300 900		Short Term Investments Wages Payable	2,500 3,200

In addition, the company had common stock of $75,000 at the beginning of the year and issued an additional $5,000 during the year. The company also had retained earnings of $20,700 at the beginning of the year and declared/paid dividends of $2,000 during the year. Prepare the income statement, statement of stockholders’ equity, and balance sheet.

Using the account information above develop a Balance Sheet and Income Statement, then answer the next five questions.

Q1. Calculate the Net Income After Interest and Taxes.

Q2. Calculate the Total Amount of Current Assets

Q3. Calculate the Total Amount of Liabilities. Include both current and long term debt.

Q4. Calculate the Total Assets for Riley Incorporated. Remember to consider Contra-Assets when making the calculation

Q5. Assume that the Net Income After Interest and Taxes for Riley Incorporated is $9,200 (it's not but make this assumption for this question only). Using the other account data shown above for Riley, what is the ending Retained Earnings balance?

Q6.

Answer 1