Reference no: EM13294584

Financial Statement Preparation: The balance sheet for Rogers Industries for March 31, 2008, appears below. Information relevant to Rogers Industries' operations for the 2009 fiscal year is given following the balance sheet. Using the data presented:

a. Prepare in good form an income statement for Rogers Industries for the year ended March 31, 2009. Be sure to show earnings per share (EPS).
b. Prepare in good form a balance sheet for Rogers Industries for March 31, 2009.
c. Determine Rogers' free cash flow from operations (FCFO) for the 2009 fiscal year.

Balance Sheet ($000)
Rogers Industries
March 31, 2008

Assets Liabilities and shareholders' equity

Cash $ 40 Accounts payable $ 50
Marketable securities 10 Line of credit 80
Accounts receivable 80 Accruals 10
Inventories 100 Total current liabilities $140
Total current assets $230 Long-term debt $270
Gross fixed assets $890 Preferred shares $ 40
Less: Accumulated amortization 240 Common shares (119,000 320
Net fixed assets $650 shares outstanding)
Total assets $880 Retained earnings 110
Total shareholders' equity $470
Total liabilities and
shareholders' equity $880

 

Rogers Industries
Relevant information for the 2009 fiscal year
1. Sales were $1,200,000
2. Cost of goods sold equals 60 percent of sales
3. Operating expenses equal 15 percent of sales; amortization expense of $20,000 is included in this percentage.
4. Interest expense is 10 percent of the total beginning balance of the line of credit and long-term debt.
5. The firm pays 40 percent taxes on taxable income.
6. Preferred share dividends of $4,000 were paid.
7. Cash and marketable securities are unchanged.
8. Accounts receivable equal 8 percent of sales.
9. Inventory equals 10 percent of sales.
10. The firm acquired $30,000 of additional fixed assets in 2009.
11. Accounts payable equal 5 percent of sales.
12. Line of credit, long-term debt, preferred shares, and common shares remain unchanged.
13. Accruals are unchanged.
14. Cash dividends of $1 per common share were paid to common shareholders.
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