b. Show the effect of above adjustment in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity FA for financing activity, NC for net change in cash, and NA for Not affected by the event.) BIG COMPANY Horizontal Statements Model for Year 1 Stockholders Equity Retained Earnings Liabilities ped Income Statement Event Assets Statement of Cash Flows Salaries Payable Expenses Net Income +Revenue Book 1. 9,900 9,900 Print Merences c-1. Determine the amount of net income BIG would report on the Year 1 income statement, assuming that BIG received $25,400 of cash revenue. Net income d nt c-2. What is the amount of net cash flow from operating activities for Year 1? ences Net cash flow from operating activities d. What amount of saleries payable would BIG report on the December 31 Year 1, balance sheet? Salaries payable Saved Journal entry worksheet K 1 Record the adjusting entry for salaries payable. Note: Enter debits before credits. Date General Journal Credit Debit December Salaries expense 9,900 31 Salaries payable 9,900 View general journal Clear entry Record entry Next 2 of 2