4. LHR Company had the following transactions for 2022, the first year of operations: 1) Issued common stock for $50,000 cash. 2) Purchased merchandise on account, $40,000. 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. Show your work.