$(1)$ During Year $1,$ Hardy Merchandising Company purchased $$16,000$ of inventory on account.

$(2)$ Hardy sold inventory on account that cost $$12,000$ for $$18,000.$

$(3)$ Cash payments on accounts payable were $$10,000.$

$(4)$ There was $$16,000$ cash collected from accounts receivable.

$(5)$ Hardy also paid $$3,600$ cash for operating expenses

Assume that Hardy started the accounting period with $$24,000$ in both cash and common stock.

Required:

Identify the events described in the preceding paragraph and record them in a horizontal statements model like the following one. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$

What is the balance of accounts receivable at the end of Year $1?$

What is the balance of accounts payable at the end of Year $1?$

What are the amounts of gross margin and net income for Year $1?$

Determine the amount of net cash flow from operating activities.