Ashton Company makes eBook readers. The company had the following amounts at the beginning of 2016 $1,380,000 106,000 40,000 90,000 $1212000 404,000 Cash Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Common Stock Retained Earnings 50,000 of research and development costs. 14,000 for raw materials that will be used to make eBook readers. . Paid 2. Paid 3. Placed 4. Paid 5. Paid 6. Paid 7. Recognized depreciation on the office equipment. The equipment was acquired on January, 1 200,000 of the raw materials cost into the process of manufacturing eBook readers. $150,000for salaries of selling and administrative employe 240,000 for wages of production workers 6 216,000 to purchase equipment used in selling and administrative offices, 10 2016. It has a salvage value and a ar 20,000 8. Paid 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on Jan 1 10. Paid 500,000 cash to purchase manufacturing equipment. 0 2016. It has a $ salvage value and a 10,000 for rent and utblity costs on the manufacturing facility 20,000 for inventory holding expenses for completed eBook readers (rental of ear life 11. Paid 2. Completed and transferred eBook readers that had total cost of 3. Sold warehouse space, salaries of warehouse personnel, and other general storage cost, this is not cost of goods) $600,000 from work in process inventory to finished goods 2.000 eBook readers for$1.,000.000 cash $550,000 to make the eBook readers sold in Event 13 14. It cost Ashton REQUIRED Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model. Hint: there are six asset accounts-you will need to adjust the template given and include more asset accounts a. b. Explain why Ashton's recognition of cost of goods sold had no impact on cash flow c. Prepare a schedule of cost of goods manufactured and sold, a formal income statement, and a balance sheet for the year. On the Balance sheet, split out the 3 different inventory accounts Ashton Company makes eBook readers. The company had the following amounts at the beginning of 2016 $1,380,000 106,000 40,000 90,000 $1212000 404,000 Cash Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Common Stock Retained Earnings 50,000 of research and development costs. 14,000 for raw materials that will be used to make eBook readers. . Paid 2. Paid 3. Placed 4. Paid 5. Paid 6. Paid 7. Recognized depreciation on the office equipment. The equipment was acquired on January, 1 200,000 of the raw materials cost into the process of manufacturing eBook readers. $150,000for salaries of selling and administrative employe 240,000 for wages of production workers 6 216,000 to purchase equipment used in selling and administrative offices, 10 2016. It has a salvage value and a ar 20,000 8. Paid 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on Jan 1 10. Paid 500,000 cash to purchase manufacturing equipment. 0 2016. It has a $ salvage value and a 10,000 for rent and utblity costs on the manufacturing facility 20,000 for inventory holding expenses for completed eBook readers (rental of ear life 11. Paid 2. Completed and transferred eBook readers that had total cost of 3. Sold warehouse space, salaries of warehouse personnel, and other general storage cost, this is not cost of goods) $600,000 from work in process inventory to finished goods 2.000 eBook readers for$1.,000.000 cash $550,000 to make the eBook readers sold in Event 13 14. It cost Ashton REQUIRED Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model. Hint: there are six asset accounts-you will need to adjust the template given and include more asset accounts a. b. Explain why Ashton's recognition of cost of goods sold had no impact on cash flow c. Prepare a schedule of cost of goods manufactured and sold, a formal income statement, and a balance sheet for the year. On the Balance sheet, split out the 3 different inventory accounts