(1) During Year 1 Hardy Merchandising Company purchased $22,000 of inventory on account (2) Hardy sold...

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(1) During Year 1 Hardy Merchandising Company purchased $22,000 of inventory on account (2) Hardy sold inventory on account that cost $16,500 for $24,800 (3) Cash payments on accounts payable were $13,800 (4) There was $22,100 cash collected from accounts receivable (5) Hardy also paid $4,200 cash for operating expenses Assume that Hardy started the accounting period with $19,000 in both cash and common stock Required: a. Identify the events described in the preceding paragraph and record them in a horizontal statements model like the following one Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA) b. What is the balance of accounts receivable at the end of Year 1? c. What is the balance of accounts payable at the end of Year 1? d. What are the amounts of gross margin and net income for Year 1? e. Determine the amount of net cash flow from operating activities. Complete this question by entering your answers in the tabs below. Req A Rea B to E Identify the events described in the preceding paragraph and record them in a honzontal statements model like the following one. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Balance Sheet Income Statement Event Cash 4 Assets Accounts Receivable Liabilities Accounts Stockholders' Equity Inventory Payable Beginning balance 19,000 + Common Stock 19,000+ Retained Revenue Earnings Expenses Net Income Statement of Cash Flows 1 + 2a + 2b 3 (1) During Year 1 Hardy Merchandising Company purchased $22,000 of inventory on account (2) Hardy sold inventory on account that cost $16,500 for $24,800 (3) Cash payments on accounts payable were $13,800 (4) There was $22,100 cash collected from accounts receivable (5) Hardy also paid $4,200 cash for operating expenses Assume that Hardy started the accounting period with $19,000 in both cash and common stock Required: a. Identify the events described in the preceding paragraph and record them in a horizontal statements model like the following one Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA) b. What is the balance of accounts receivable at the end of Year 1? c. What is the balance of accounts payable at the end of Year 1? d. What are the amounts of gross margin and net income for Year 1? e. Determine the amount of net cash flow from operating activities. Complete this question by entering your answers in the tabs below. Req A Rea B to E Identify the events described in the preceding paragraph and record them in a honzontal statements model like the following one. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Balance Sheet Income Statement Event Cash 4 Assets Accounts Receivable Liabilities Accounts Stockholders' Equity Inventory Payable Beginning balance 19,000 + Common Stock 19,000+ Retained Revenue Earnings Expenses Net Income Statement of Cash Flows 1 + 2a + 2b 3