Refer to RE18-8. Prepare a partial balance sheet for Rose Corporation at the end of Year 1.
In RE18-8, Rose Corporation uses the installment method and has the following information for Year 1 of its operations:
Total credit sales ................. $650,000
Total cost of goods sold .............. 430,000
Installment method sales* .............. 200,000
Installment method cost of goods sold* ....... 150,000
Gross profit rate on installment method sales ..... 25%
Cash receipts on installment sales, Year 1 ....... 60,000
Cash receipts on other credit sales .......... 400,000
*Included in total credit sales and total cost of goods sold, respectively.
Prepare a partial income statement for Rose Corporation for Year 1.