1. 123456 On January 1, 2021, Tom R started a business The company had the following accounting events during the first year of operation. Started the business by issuing common stock for Paid $197,500 cash to purchase inventory. Sold merchandise that cost $250,000 cash. Paid $100,000 for $225,000 on account. $50,000 for operating expenses. Wrote off Collected $15,000 of inventory $200,000 cash from accounts receivable. REQUIRED 1. Record the preceding transactions in the horizontal statements model. 2. Prepare an income statement, a balance sheet, and a statement of cash flows. 3. Since Tom R sold inventory for $ $ 225,000 he will be able to recover more than 20% of the 250,000 he invested in the stock. Do you agree with this statement? Why or why not? Hint: Think Net Income generated by business activity in the period compared to the original investment