Joe Roberts, a retired navy seal operator, started Special Ops Security which focuses on providing personal protection to high profile individuals. The company experienced the following events during its first year of operations, Year 1:

1. Acquired $226,000 cash from the issuance of common stock.
2. Earned $95,600 revenue on account from providing personal protection services for local celebrities.
3. Collected $68,000 of the balance in accounts receivable.

Required:

Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. The first transaction is shown as an example.

Note: In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require an input - leave cells blank if there is no corresponding input needed.