Rees Corporation experienced a fire on December 31, 2011, 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 3.5 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, 2010, were $605,000.

Instructions

Compute the following for Rees Corporation.

(a) Cost of goods sold for 2011.

(b) Net sales (credit) for 2011.

(c) Net income for 2011.

(d) Total assets at December 31, 2011.

December 31, 201i $ 30,000 December 31, 2010 Cash Receivables (net) $ 10,000 200,000 50,000 30,000 400,000 113,500 180,000 Inventory Accounts payable Notes payable Common stock, $100 par Retained earnings 90,000 400,000 101,000