Expo Co. was started in 2011. During 2011, the company (1) acquired \(\$ 11,000\) cash from the issue of common stock, (2) earned cash revenue of \(\$ 18,000\), (3) paid cash expenses of \(\$ 10,500\), and (4) paid a \(\$ 1,000\) cash dividend to the stockholders.
Required

a. Record these four events in a horizontal statements model. Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first event is shown as an example.

b. What does the income statement tell you about the assets of this business?

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Balance Sheet Event No. Cash = N. Pay + C. Stock. Ret. Ear. Rev. Income Statement Exp. Statement of = Net Inc. Cash Flows 1. 11,000 = NA + 11,000 + NA NA - NA == NA 11,000 FA