1 points eBook Hint References 1. Acquired $14,000 cash from the issue of common stock. 2. Purchased inventory for $5,400 cash. 3. Sold inventory costing $3,240 for $5,508 cash. 4. Paid $900 for advertising expense. Required Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) Event Cash Assets + Inventory MILO CLOTHING Effect of Events on the Financial Statements Stockholders' Equity Retained Earnings Common Stock + Revenue Expenses = Net Income Statement of Cash Flows

1. Acquired $14,000 cosh from the issue of common stock. 2. Purchased inventory for $5,400 cash. 3. Sold inventory costing $3,240 for $5,508 cash 4. Poid $900 for advertising expense Required Record the events in a horizontal statement modet. In the Cash Flow column, use OA to designate operating activity, IA for investment activity. FA for finencing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.)