(1) During Year 1. Hardy Merchandising Company purchased $19,000 of inventory on account. (2) Hardy sold inventory on account that. cost $14,300 for $21,400. (3) Cash payments on accounts payable were $11,900. (4) There was $19,000 cash collected from accounts recelvable. (5) Hardy also paid $3,900 cash for operating expenses. Assume that Hardy started the accounting period with $22,500 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 fiows as operating activities (OA), investing activities (IA), or financing activities (FA). b. What is the balance of accounts recervable 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 qross 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. Identry the events described in the preceding paragroph and record them in a horizontal statements model like the fodowing one, Also; in the Statement of Cad activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account batances and castioublows with a minus sign. teave ceils blank if no input is needed. Identity the events described in the preceding paragraph and record them in a hortzontal statoments model ine the following one. Also, in the Statement of 0 activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account balances and cash outhows with a minus slon. Leave ceils blankif no input is defded. (1) During Year 1, Hardy Merchandising Company putchased $19,000 of inventory on account. (2) Hardy sold inventory on account that cost $14,300 for $21,400. (3) Cash payments on accounts payable were $11,900. (4) There was $19,000 cash collected from accounts recelvable. (5) Hardy also paid \$3,900 cash for operating expenses. Assume that Hardy started the accounting period with $22,500 in both cash and common stock. Required: a. Identify the ovents 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. What is the balance of accounts recelvable, accounts payable, amounts of gross margin, net income and net cash flow from operating activities at the end of Year 1 ? Note: Indicate cash outhows with minuis sign
