E15-10 Rees Corporation experienced a fire on December 31, 2009, in which its financial

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Rees Corporation experienced a fire on December 31, 2009, in which its financial
records were partially destroyed. It has been able to salvage some of the records and has ascertained
the following balances.

	31-Dec-09	31-Dec-08
Cash	30,000	10,000
Receivables (net)	72,500	126,000
Inventory	200,000	180,000
Accounts payable	50,000	90,000
Notes payable	30,000	60,000
Common stock, $100 par	400,000	400,000
Retained earnings	113,500	101,000

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, 2008, were $605,000.

Instructions
Compute the following for Rees Corporation.
(a) Cost of goods sold for 2009.
(b) Net sales (credit) for 2009.
(c) Net income for 2009.
(d) Total assets at December 31, 2009.