Ruthven Company had the following transactions for 2014, the first year of operations:
1) Issued common stock for $50,000 cash.
2) Purchased merchandise on account, $40,000, terms 1/10, n/30.
3) Sold merchandise on account for $25,000. The inventory sold had cost $14,000.
4) Paid for the merchandise purchased within the discount period.
5) Collected $20,000 on the merchandise sold on account.
6) Paid operating expense of $5,000.
Required:
a) What are total assets at the end of 2014?
b) What is the balance of the cash account at the end of 2014?
c) What is gross margin for 2014?
d) What is net income for 2014?
e) What are total liabilities at the end of 2014?
f) What is total equity at the end of 2014?
g) What is total retained earnings at the end of 2014?
h) What was the amount of cash flows from operating activities?

Question

Quizplus · Accepted Answer

The Answer of Ruthven Company had the following transactions for 2014, the first year of operations:
1) Issued common stock for $50,000 cash.
2) Purchased merchandise on account, $40,000, terms 1/10, n/30.
3) Sold merchandise on account for $25,000. The inventory sold had cost $14,000.
4) Paid for the merchandise purchased within the discount period.
5) Collected $20,000 on the merchandise sold on account.
6) Paid operating expense of $5,000.
Required:
a) What are total assets at the end of 2014?
b) What is the balance of the cash account at the end of 2014?
c) What is gross margin for 2014?
d) What is net income for 2014?
e) What are total liabilities at the end of 2014?
f) What is total equity at the end of 2014?
g) What is total retained earnings at the end of 2014?
h) What was the amount of cash flows from operating activities?

Ruthven Company Had the Following Transactions for 2014, the First