1. Acquired $88,000 cash from the issue of common stock. 2. On February 1, Year 1, Xavier Sporting Goods purchased merchandise inventory for $53,000 on account from True Sports Incorporated. 3. On February 15, Year 1, Xavier Sporting Goods returned $24,000 worth of merchandise inventory to True Sports Incorporated. 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. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first transaction is shown as an example. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Balance Sheet Income Statement Event Number Assets = Liabilities + Stockholders' Equity Cash + Inventory = Accounts Payable + Stock Common Retained Revenue - Expenses = Earnings Net Income Statement of Cash Flows 1. 88,000 + 88,000 + 88,000 FA 2. + 53,000 + 3. (24,000) + + Total 88,000 + 29,000 0+ 88,000 + 0 0 0 = 0 88,000 NC* = *NC Net change in cash