Ruthven Company Had the Following Transactions for 2014, the First

question 9

Essay

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?

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Definitions:

Sensation

The immediate response of our sensory receptors (e.g., eyes, ears) to basic stimuli such as light, color, sound, pressure, and odor.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons and transmit them toward the cell body.

Synapses

The junctions between nerve cells where signals are transmitted from one neuron to another, playing a crucial role in the functioning of the nervous system.

Animal Species

A group of organisms capable of interbreeding and producing fertile offspring, sharing common characteristics and behaviors.