ACC 280 / XACC 280
Axia College of University of Phoenix (UoP)
Principles of Accounting
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
ACC 280 / XACC 280 Solution
Help in ACC 280
Help in XACC 280
Exercise 15-10 (E15-10) Rees Corporation experienced a fire on December 31, 2009, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances.
December 31, 2009 December 31, 2008
Cash $ 30,000 $ 10,000
Receivables (net) 72,500 126,000
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 113,500 101,000
Additional information:
1. The inventory turnover is 3.5 times.
2. The return on common stockholders’ equity is 24%. 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, 2008, were $605,00
Instructions
Compute the following for Rees Corporation.
(a) Cost of goods sold for 2009.
(b) Net sales (credit) for 2009.
(c) Net income for 2009.
(d) Total assets at December 31, 2009.
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