Rees Corporation experienced a fire on December 31, 2014, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances.

Additional information:

1. The inventory turnover is 3.4 times.

2. The return on common stockholders’ equity is 25%. 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, 2013, were $650,000.

Instructions

Compute the following for Rees Corporation.

(a) Cost of goods sold for 2014.

(b) Net sales (credit) for 2014.

(c) Net income for 2014.

(d) Total assets at December 31, 2014.

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Receivables (net) Inventory Accounts payable Notes payable Common stock, $100 par Retained earnings December 31, 2014 30,000 73,000 200,000 50,000 30,000 400,000 134,000 December 31, 2013 10,000 126,000 180,000 90,000 60,000 400,000 122,000