$(1)$ During Year $1,$ Hardy Merchandising Company purchased $$21,000$ of inventory on account.

$(2)$ Hardy sold inventory on account that cost $$15,800$ for $$23,600.$

$(3)$ Cash payments on accounts payable were $$13,100.$

$(4)$ There was $$21,000$ cash collected from accounts receivable.

$(5)$ Hardy also paid $$4,100$ cash for operating expenses

Assume that Hardy started the accounting period with $$18,500$ 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.

Complete this question by entering your answers in the tabs below.

Req A

Req $B$ to $E$