Note: Need the answer in excel format in detail. Ruthven Company had the followi

ID: 2421648 • Letter: N

Question

Note: Need the answer in excel format in detail.

Ruthven Company had the following transactions for 2012, 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 2012?

b) What is the balance of the cash account at the end of 2012?

c) What is gross margin for 2012?

d) What is net income for 2012?

e) What are total liabilities at the end of 2012?

f) What is total equity at the end of 2012?

g) What is total retained earnings at the end of 2012?

h) What was the amount of cash flows from operating activities?

e) Total liabilities at the end of 2012 excluding equity portion is NIL as the company has paid to the creditor

f) Total equity at the end of 2012 is $60000 (Equity 50000+ Profit 10000)

(Sales 25000+discount received 4000+closing stock 26000-purchases 40000-operating expense of 5,000)

g) Total retained earnings at the end of 2012 is $10000 assuming the tax rate as nil

h) the amount of cash flows from operating activities is -$16000

Net profit 10000 Less: Increase in stock 26000 ---------- -16000

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