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Exercise 2-4A (Algo) Effect Of accounts receivable and accounts payable transactions on financial statements LO 2-1, 2-2 The following events apply to Lewis and Harper. a public accounting firm. for the Year I accounting perbd l. Performed 5102.000 Of Services for Clients on account. 2. performed 556.000 Of for Cash. 3. Incurred "0.000 Of Other operating expenses account. 4. Paid $22,000 Cash to an employee for Salary 5. Collected 90.000 Cash from accounts receivable. 6. Paid $20,000 Cash on accounts payable. 7. paid a S7,OOO cash dividend to the Stockholders. Accrued salaries Were SS. 200 at the end Of Year 1 Required: a. use a horizontal statements model to Show each event affects the balance Sheet. income Statement. and statement Of Cash More specifically. record the arnOLH1tS Of the events into the model. Also, in the Statement Of Cash Flows Column. Classify the Cash flows as operating activities investing activities ('A1. or financing activities The first event iS recorded as an example b. What iS the amount Of total assets at the end Of Year 1? c. What iS the balance Of accounts receivable at the end Of Year 1? d. What iS the balance Of accounts payable at the end Of Year 1? f. What iS net income for Year 1? g. What iS the amount Of net cash flow from operating activities for Year t? is but not entily Complete by in tabs the balaQ ard statem.t of flows. the of emts into the mdel. in the of Cash Flows clusifv (OA), (IA), or (FA). The is Note: Ent any SEOtoe (23,000}' 70. otne 00 00 103,000 h outflm with a minLE sign. QI's blank if input AND HARPER Model Year 1 Salah" 00 - Sto e Ide 102,000 00 00 00 00 102,000 102,000 56,000 e - 158,000 ReqBtoD 60. Otoe of OA OA 60,000' 40.000 102,000 00 00 1 oz. ODO 56,000 (23,000) 70,000 120,000) (7,000) 76,000 NC of change in