FINANCE 522

QUIZ
Fall 2010

With the information given below, construct Boodroo Inc.’s Balance Sheet, Income
Statement and Retained Earnings Statement for 2008.

December 31, 2008

Cash $ ?
Notes Payable 500,000
Sales 10,000,000
Accounts Receivable 850,000
Accounts Payable 1,200,000
Long-term Debt 18,000,000
Common Stock (10,000 shares) 10,000
Additional Capital 4,990,000
Retained Earnings (2007) 5,050,000
Gross Fixed Assets 32,350,000
Cost of Goods Sold 4,000,000
Other Operating Expenses 1,450,000
Inventory 1,980,000
Interest Expense 2,500,000
Tax Rate 50%
Depreciation Expense 50,000
Accumulated Depreciation 6,050,000
Dividends 5,000