RPI, Inc. Balance Sheets for 12/31/02 and 12/31/03 2002 $16,000 7,000 42,000 50,000 1,200 $116,200 286,000 $402.200 Liabilities and Stockholders' Equity 2002 $48,000 16,000 6,000 $70,000 $160,000 $172,200 $402,200 Cash Marketable securities Accounts receivable Inventory Prepaid rent Total current assets Net plant and equipment Total assets Accounts payable Notes payable Accruals Total current liabilities Long-term debt Common stockholders' equity Total liabilities and equity 2003 $17,000 7,200 38,000 93,000 1,100 $156,300 290,000 $446.300 2003 $55,000 13,000 5,000 $73,000 $150,000 $223,300 $446,300 RPI, Inc. Income Statement For the Year Ended 12/31/03 Sales (all credit) Less: Cost of goods sold Gross profits Less: Operating and interest expenses General and administrative Interest Depreciation Total Profit before taxes Less: Taxes Net income available to common stockholders Less: Cash dividends Change in retained earnings $50,000 10,000 30,000 $700,000 500,000 $200,000 90,000 $110,000 27,100 $82,900 31,800 $51,100

RPI, Inc. Balance Sheets for 12/31/02 and 12/31/03 2002 $16,000 7,000 42,000 50,000 1,200 $116,200 286,000 $402.200 Liabilities and Stockholders' Equity 2002 $48,000 16,000 6,000 $70,000 $160,000 $172,200 $402,200 Cash Marketable securities Accounts receivable Inventory Prepaid rent Total current assets Net plant and equipment Total assets Accounts payable Notes payable Accruals Total current liabilities Long-term debt Common stockholders' equity Total liabilities and equity 2003 $17,000 7,200 38,000 93,000 1,100 $156,300 290,000 $446.300 2003 $55,000 13,000 5,000 $73,000 $150,000 $223,300 $446,300 RPI, Inc. Income Statement For the Year Ended 12/31/03 Sales (all credit) Less: Cost of goods sold Gross profits Less: Operating and interest expenses General and administrative Interest Depreciation Total Profit before taxes Less: Taxes Net income available to common stockholders Less: Cash dividends Change in retained earnings $50,000 10,000 30,000 $700,000 500,000 $200,000 90,000 $110,000 27,100 $82,900 31,800 $51,100

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 10MCQ

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