b. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (), decreases (D), or does not affect (NA) each element of the financial statements. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or not applicable (NA). The first transaction is shown as an example THE CANDLE SHOP Horizontal Statements Model for Year 1 Balance Sheet Income Statement Statement of Cash Flows Event O. Liabilities+Stockholders' Equity Assets Net Income Effect on Cash Type of Activity Common Retained RevenueExpense Cash + Land = Notes Payable NA Earnin + NA + NA NA - NA NA FA 4 7 b. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (), decreases (D), or does not affect (NA) each element of the financial statements. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or not applicable (NA). The first transaction is shown as an example THE CANDLE SHOP Horizontal Statements Model for Year 1 Balance Sheet Income Statement Statement of Cash Flows Event O. Liabilities+Stockholders' Equity Assets Net Income Effect on Cash Type of Activity Common Retained RevenueExpense Cash + Land = Notes Payable NA Earnin + NA + NA NA - NA NA FA 4 7