Kroger 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: Answer the following questions.
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?_____________________________________________________