2. Ruthers Corporation began business on January 1, 20X5. The financial statements for Ruthers' first year are given below. Because it is the first year of the company, there are no beginning balances for the balance sheet accounts. This should simplify your preparation of the cash flow statement. Figure: Ruthers Corporation Income Statement as of 12/31/X5 Revenue Cost of Goods Sold Gross Profit Other Expenses Earnings Before Tax Tax Expense Net Income Figure: Buthers Corporation Balance Sheet 12/31/X5 Assets Cash Accounts Receivable Inventory Prepaid Expenses Land Total Assets Ruthers Corporation Income Statement As of 12/31/X5 Additional Information: Ruthers Corporation Balance Sheet 12/31/XS $900 1,990 2,510 577 14,000 $19,977 1 Bythers purchased land for $14,000 cash. 2. Common stock was issued for $4,500. 3. A note payable was signed for $10,000 cash. Liabilities Accounts Payable Salaries Payable Note Payable Total Liabilities Owners' Equity Common Stock Retained Earnings Total Owners' Equity Total Liabilities & Owners' Equity $14,900 (6,780) 8,120 (3,910) 4,210 (1,263) $2,947 $1,830 700 10,000 $12,530 4,500 2,947 7,447 $19,977 H

2. Buthet Corporation began buniness cn Janyary 1, 20x5. The financial statements for Buthers, first year are given below . Because it is the first year of the company, there are no becinnire balances for the balance sheet eccounts. This shculd simplify yout preparation of the cash flow statement: figure. Guchect Covparation incorne Statement os of 12/31/6.5 Figure Butheck Corporation Bolance Sheet 12/31/x5 Addional informabon 1. Buthege puechased land for 514,000 iahh 2. Comimen thock was istued for 54,500 3. Anote peyable was sugned for 510000 cath