Exercise 3-5 Recording inventory transactions in a financial statements model LO 3-1 Milo Clothing experienced the following events during 2018. Its first year of operation Pin References 1. Acqured $30,000 cash from the issue of common stock 2. Purchased Inventory for $15.000 cash 3. Sold inventory costing $9.000 for $20.000 cash 4. Paid $1.500 for advertising expense Required Record the events in a horizontal statement modellow column, use On to designate operating activity, IA for investment activity, PA for financing activity, or NC for ne change in cash. If the elements not affected by the event, leave the cell blank. (Not overy cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) MLO CLOTHING Efect of Events on the Financial Statements Stockholders' Equity Common Expenses - Net Income Statement of Cash Stock Earnings Event Cash Inventory 1 2 + Ja 36 4 + 01 - o