Prepare an income statement for the year ending may 31 2005


Rigby Corporation began operations on June 1, 2004, as an online retailer of camping and outdoor recreational equipment. The following financial statement data were taken from Rigby's records at the end of its first year of operations, May 31, 2005:

Accounts payable

$ 54,000

Accounts receivable

86,400

Cash

?

Cash receipts from operating activities

1,506,600

Cash payments for operating activities

1,260,000

Capital stock

450,000

Cost of sales

720,000

Dividends

45,000

Income tax expense

252,000

Income taxes payable

36,000

Interest expense

27,000

Inventories

162,000

Note payable due in 2010

180,000

Property, plant, and equipment

680,400

Retained earnings

?

Sales

1,593,000

Selling and administrative expense

189,000

Instructions

1. Prepare an income statement for the year ending May 31, 2005.

2. Prepare a retained earnings statement for the year ending May 31, 2005.

3. Prepare a balance sheet as of May 31, 2005.

4. Prepare a statement of cash flows for the year ending May 31, 2005.

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Cost Accounting: Prepare an income statement for the year ending may 31 2005
Reference No:- TGS0803267

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