Riley Incorporated reports the following amounts at the end of the year (all amounts in $000): Cash $16,140
Product Revenues $112,500
Depreciation Expense 3,210
Mortgage Payable 38,000
Taxes Payable 1,020
Treasury Stock 650
Buildings 79,000
Salaries 62,800
Land 40,000
Accumulated Depreciation 21,730
Current Portion - Notes and Mortgage Payable 2,200
Accounts Payable 18,500
Equipment 42,000
Net Accounts Receivable 23,500
Income Tax Expense 3,650
Discounts on Notes Payable 7,950
Interest Expense 4,000
Inventory 6,400
Notes Payable 25,650
Costs of Goods Sold 17,400
Utilities 350
License Revenues 250
Advertising Expense 11,300
Short Term Investments (Securities) 2,500
Prepaid Expense 900
Wages Payable 3,200
In addition, the company had common stock of $75,000 at the beginning of the year and issued an additional $5,000 during the year. The company also had retained earnings of $20,700 at the beginning of the year and declared/paid dividends of $2,000 during the year. Prepare the income statement, statement of stockholders’ equity, and balance sheet.

Answer and Explanation:

The presentation of the financial statement is as follows:

Income Statement

Revenues

Product revenues  $112,500

License Revenues  $250

Total Revenues (A)  $112,750

Expenses

Salaries  $62,800

Discount on Notes Payable  $7,950

Interest expense  $4,000

Depreciation expenses  $3,210

Income Tax Expenses  $3,650

Cost of Goods Sold  $17,400

Utilities  $350

Advertising Expenses  $11,300

Total Expenses (B)  $110,660

Net Income (A-B)  $2,090

Stockholders’ Equity

Statement of Stockholder's Equity

Particulars                   Common Stock     Retained Earning

Opening Balance           $75,000               $20,700

Add: Issue                       $5,000

Add: Net Income                                         $2,090

Less: Dividend                                            ($2000)

Closing Balance           $80,000               $20,790

 Balance Sheet

A. Stockholder's Equity

Common Stock   $80,000

Retained Earning   $20,790

Treasury Stock  (650)

Total $100,140

B. Liabilities

Mortgage Payable  $38,000

Taxes Payable  $1,020

Notes & Mortgage payable  $2,200

Accounts payable   $18,500

Notes Payable  $25,650

Wages Payable  $3,200

Total liabilities $88,570

Total Stockholders' Equity and Liabilities  $188,710

C. Assets

Equipment   $42,000

Building  $79,000

Land   $40,000

Accumulated Depreciation  (21730)

Net Accounts Receivables  $23,500

Cash  $16,140

Inventory  $6,400

Short Term Investments  $2,500

Prepaid Expense  $900

Total Assets   $188,710

the answer to this question would be shared investment

a. primarily outdoors, responding to emergencies and protecting people.

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