Patty's Pet Shop experienced the following business events during its first year of operation:1)Borrowed $50,000 from the bank.2)Purchased merchandise on account, $44,000, terms 1/10, n/30.3)Paid for the merchandise purchased within the discount period.4)Sold merchandise on account for $51,000. The inventory sold had a cost of $28,000.5)Collected $41,500 on the merchandise sold on account.6)Paid operating expense of $17,000.7)Recognized accrued interest expense of $2,000.Required:a)What is the balance of the cash account at the end of Year 1?b)What are total assets at the end of Year 1?c)What is gross margin for Year 1?d)What is operating income for Year 1?e)What is net income for Year 1?f)What are total liabilities at the end of Year 1?g)What is total retained earnings at the end of Year 1?

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The Answer of Patty's Pet Shop experienced the following business events during its first year of operation:1)Borrowed $50,000 from the bank.2)Purchased merchandise on account, $44,000, terms 1/10, n/30.3)Paid for the merchandise purchased within the discount period.4)Sold merchandise on account for $51,000. The inventory sold had a cost of $28,000.5)Collected $41,500 on the merchandise sold on account.6)Paid operating expense of $17,000.7)Recognized accrued interest expense of $2,000.Required:a)What is the balance of the cash account at the end of Year 1?b)What are total assets at the end of Year 1?c)What is gross margin for Year 1?d)What is operating income for Year 1?e)What is net income for Year 1?f)What are total liabilities at the end of Year 1?g)What is total retained earnings at the end of Year 1?

Patty's Pet Shop Experienced the Following Business Events During Its