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( 1 ) During Year 1 , Hardy Merchandising Company purchased $ 2 6 , 0 0 0 of inventory on account. ( 2 )
During Year Hardy Merchandising Company purchased $ of inventory on account.
Hardy sold inventory on account that cost $ for $
Cash payments on accounts payable were $
There was $ cash collected from accounts receivable.
Hardy also paid $ cash for operating expenses
Assume that Hardy started the accounting period with $ 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
c What is the balance of accounts payable at the end of Year
d What are the amounts of gross margin and net income for Year
e Determine the amount of net cash flow from operating activities.
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