Required information [The following information applies to the questions displayed below.] Roth Inc, experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $80,000 cash. 2. Purchased $245,000 of merchandise on account. 3. Sold merchandise that cost $152,000 for $302,000 on account. 4. Collected $246,000 cash from accounts receivable. 5. Paid $230,000 on accounts payable. 6. Paid $48,000 of salaries expense for the year. 7. Paid other operating expenses of $37,000. 8. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Allowance Balance Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $33,600 14,000 2,800 2,800 2,800 Percent Likely to Be Uncollectible 0.01 0.05 0.10 0.20 0.50 c. What is the net realizable value of the accounts receivable at December 31, Year 1? Net realizable value $ 32,510 Roth Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $80,000 cash. 2. Purchased $245,000 of merchandise on account. 3. Sold merchandise that cost $152,000 for $302.000 on account. 4. Collected $246,000 cash from accounts receivable. 5. Paid $230,000 on accounts payable. 6. Paid $48,000 of salaries expense for the year. 7. Pald other operating expenses of $37,000. 8. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Allowance Balance Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $33,600 14,000 2,800 2,800 2,800 Percent Likely to Be Uncollectible 0.01 0.05 0.10 0.20 0.50 b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Roth Inc. for Year 1. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.) Answer is not complete. ROTH, INC. Income Statement For the Year Ended Year 1 Sales revenue Cost of goods sold $ 302,000 (152,000) 150,000 Operating expenses Salaries expense Operating expenses Credit card expense $ 48,000 37,000 3,276 X Total operating expenses 88,276 $ 61,724 Answer is not complete. ROTH, INC. Statement of Changes in Stockholders' Equity For the Year Ended Year 1 Beginning common stock $ 80,000 X $ 80,000 Plus: Net income 61,724 61,724 $ 141,724 Total stockholders' equity ROTH, INC. Balance Sheet As of Year 1 Assets Cash $ 11,000 Merchandise inventory X $ 93,000 X Less: Allowance for doubtful Accounts (3,276) 89,724 Accounts receivable 56,000 Total assets $ 156,724 Liabilities Accounts payable $ 15,000 Stockholders' equity Common stock OS 80,000 Accounts receivable x 61,724 Total stockholders' equity Total liabilities and stockholders' equity 141,724 $ 156,724