Chapter 3, Problem 3.15S

LO 4

(Learning Objective 4: Construct the financial statements) Suppose Robin Sporting Goods Company reported the following data at July 31, 2018, with amounts in thousands:

Retained earnings
July 31, 2017…………..	$ 31,500	Cost of goods sold................	$136,800
Accounts receivable…….	34,000	Cash……………………..	50,000
Net revenues……………	191,000	Property and equipment, net…	19,400
Total current liabilities…	80,000	Common stock.......	26,800
All other expenses……	29,000	Inventories..........	36,000
Other current assets.....	5,000	Long-term liabilities............	11,700
Other assets…………..	30,000	Dividends......................	0

use these data to prepare Robin Sporting Goods Company’s single-step income statement for the year ended July 31, 2018: statement of retained earnings for the year ended July 31, 2018: and classified balance sheet at July 31, 2018. Use the report format for the balance sheet. Draw arrows linking the three statements.

LO 5

$3-15. (Learning Objective 5: Close the books) Use the Robin Sporting Goods Company data in Short Exercise 3-14 to make the company's closing entries at July 31, 2018. Then set up a T-account for Retained Earnings and post to that account. Compare Retained Earnings ending balance to the amount reported on Robin's statement of retained earnings and balance sheet. What do you find?