ROUSE EXERCISE EQUIPMENT, INC. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 713,000 Cost of Goods Sold 342,000 Gross Profit 371,000 Operating Expenses: Depreciation Expense $ 54,000 Other Operating Expenses 210,000 Total Operating Expenses 264,000 Net Income $ 107,000 ROUSE EXERCISE EQUIPMENT, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 17,000 $ 16,000 Accounts Receivable 57,000 46,000 Merchandise Inventory 79,000 90,000 Long-term Assets: Plants Assets 260,500 216,400 Accumulated Depreciation-Plant Assets (38,500) (32,400) Investments 96,000 73,000 Total Assets $ 471,000 $ 409,000 Liabilities Current Liabilities: Accounts Payable $ 72,000 $ 71,000 Salaries Payable 3,000 5,000 Long-term Liabilities: Notes Payable 61,000 69,000 Total Liabilities 136,000 145,000 Stockholders' Equity Common Stock, no par 45,000 34,000 Retained Earnings 290,000 230,000 Total Stockholders' Equity 335,000 264,000 Total Liabilities and Stockholders' Equity $ 471,000 $ 409,000
ROUSE EXERCISE EQUIPMENT, INC. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 713,000 Cost of Goods Sold 342,000 Gross Profit 371,000 Operating Expenses: Depreciation Expense $ 54,000 Other Operating Expenses 210,000 Total Operating Expenses 264,000 Net Income $ 107,000 ROUSE EXERCISE EQUIPMENT, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 17,000 $ 16,000 Accounts Receivable 57,000 46,000 Merchandise Inventory 79,000 90,000 Long-term Assets: Plants Assets 260,500 216,400 Accumulated Depreciation-Plant Assets (38,500) (32,400) Investments 96,000 73,000 Total Assets $ 471,000 $ 409,000 Liabilities Current Liabilities: Accounts Payable $ 72,000 $ 71,000 Salaries Payable 3,000 5,000 Long-term Liabilities: Notes Payable 61,000 69,000 Total Liabilities 136,000 145,000 Stockholders' Equity Common Stock, no par 45,000 34,000 Retained Earnings 290,000 230,000 Total Stockholders' Equity 335,000 264,000 Total Liabilities and Stockholders' Equity $ 471,000 $ 409,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Computing the cash effect
Rouse Exercise Equipment, Inc. reported the following financial statements for 2018:
Requirements
- Compute the amount of Rouse Exercises acquisition of plant assets. Assume the acquisition was for cash. Rouse Exercise disposed of plant assets at book value. The cost and
accumulated depreciation of the disposed asset was $47,900. No cash was received upon disposal. - Compute new borrowing or payment of long-term notes payable, with Rouse Exercise having only one long-term notes payable transaction during the year.
- Compute the issuance of common stock with Rouse Exercise having only one common stock transaction during the year.
- Compute the payment of cash dividends.
Transcribed Image Text:ROUSE EXERCISE EQUIPMENT, INC.
Income Statement
Year Ended December 31, 2018
Net Sales Revenue
$ 713,000
Cost of Goods Sold
342,000
Gross Profit
371,000
Operating Expenses:
Depreciation Expense
$ 54,000
Other Operating Expenses
210,000
Total Operating Expenses
264,000
Net Income
$ 107,000
Transcribed Image Text:ROUSE EXERCISE EQUIPMENT, INC.
Comparative Balance Sheet
December 31, 2018 and 2017
2018
2017
Assets
Current Assets:
Cash
$ 17,000
$ 16,000
Accounts Receivable
57,000
46,000
Merchandise Inventory
79,000
90,000
Long-term Assets:
Plants Assets
260,500
216,400
Accumulated Depreciation-Plant Assets
(38,500)
(32,400)
Investments
96,000
73,000
Total Assets
$ 471,000
$ 409,000
Liabilities
Current Liabilities:
Accounts Payable
$ 72,000
$ 71,000
Salaries Payable
3,000
5,000
Long-term Liabilities:
Notes Payable
61,000
69,000
Total Liabilities
136,000
145,000
Stockholders' Equity
Common Stock, no par
45,000
34,000
Retained Earnings
290,000
230,000
Total Stockholders' Equity
335,000
264,000
Total Liabilities and Stockholders' Equity
$ 471,000
$ 409,000
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