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( 1 ) During Year 1 , Hardy Merchandising Company purchased $ 2 6 , 0 0 0 of inventory on account. ( 2 )

(1) During Year 1, Hardy Merchandising Company purchased $26,000 of inventory on account.
(2) Hardy sold inventory on account that cost $19,500 for $29,300.
(3) Cash payments on accounts payable were $16,300.
(4) There was $26,100 cash collected from accounts receivable.
(5) Hardy also paid $4,600 cash for operating expenses
Assume that Hardy started the accounting period with $21,000 in both cash and common stock.
Required:
a. 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).
b. What is the balance of accounts receivable at the end of Year 1?
c. What is the balance of accounts payable at the end of Year 1?
d. What are the amounts of gross margin and net income for Year 1?
e. Determine the amount of net cash flow from operating activities.
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