Please use Microsoft Excel to answer the questions listed below.

The balance sheet for Rogers Industries for March 31, 2014, appears below. Information relevant
to Rogers Industries operations for the 2015 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, 2015. Be sure to show earnings per share (EPS).
b. Prepare in good form a balance sheet for Rogers Industries for March 31, 2015.

Balance Sheet ($000)

Rogers Industries
March 31, 2014

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 assets $ 230 Total current liabilities $ 140
Gross fixed assets $ 890 Long-term debt $ 270
Less: Accumulated amortization 240 Preferred shares $ 40
Net fixed assets $ 650 Common shares (119,000 320
Total assets $ 880 shares outstanding)
Retained earnings 110
Total shareholders equity $ 470
Total liabilities and
Shareholders equity $ 880

1
Rogers Industries
Relevant information for the 2015 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 equal 10 percent of sales.
10. The firm acquired $30,000 of additional fixed assets in 2015.
11. Accounts payable 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.

*** Question taken from Principles of Corporate Finance (2 nd Canadian Edition) by L.

J. Gitman and S. M. Hennessey