Rose Corporation Began Operations at the Start of 2014 Requirements:
1

question 60

Essay

Rose Corporation began operations at the start of 2014. During 2014, it made cash and credit sales totaling $500,000 and collected $420,000 in cash from its customers. It purchased inventory costing $250,000, paid $15,000 for dividends and the cost of goods sold was $210,000. Also, the corporation incurred the following expenses during 2014: $$\begin{array} { | l | r | } \hline \text { Salary expense } & \$ 80,000 \\\hline \text { Interest expense } & 5,000 \\\hline \text { Insurance expense } & 4,000 \\\hline \text { Supplies expense } & 6,000 \\\hline \text { Income tax expense } & 34,000 \\\hline\end{array}$$ Requirements:
1. Prepare an income statement showing revenues, expenses, income before income taxes, income tax expense, and net income for the year ended December 31, 2014.
2. Based on the above information, what is the amount of accounts receivable on the balance sheet prepared as of December 31, 2014?
3. Based on the above information, what is the amount of retained earnings on the balance sheet prepared as of December 31, 2014?

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Definitions:

Transformational Leadership

The active promotion of values to provide a shared vision of the organization. Leader and members are bound together in a higher moral purpose. The leader raises the aspirations of followers such that they think and act beyond their own self-interests.

Lewin's Styles

Kurt Lewin's leadership styles framework, which identifies three main styles of leadership: autocratic, democratic, and laissez-faire.

Productivity

The efficiency at which goods or services are produced, typically measured by the output per unit of input.

Least Preferred Coworker

A measure used in Fiedler's contingency model to identify an individual's leadership style by assessing their feelings towards the least liked coworker.