BACKGROUND: Understanding accounting information goes far beyond the ability to compute financial values entries. It is also essential that preparers and users of financial information understand how transactions affect the financial statements. and record journal elements of the Rn Lawn & Garden ells lawn and garden equipment and products, including 50-pound bags f fentizter U se the income statement, and balance sheet during the month. For the balance sheet, indicate changes to will not Wilson's June purchases and sales of 50-pound fertilizer bags impacted its statement of cash flows, the balance sheet. These amounts e sheet accounts. Some lines might not have answers. List perpetia invenoy sps umand amcounts in the second column. The companry ue June Cost of Goods Sold is $11,750 Ending inventory on June 30 is $7,350 Wilson purchased $16,100 of inventory on account during the month of June. There was a $4,200 beginning balance in the Accounts Payable account on June 1 Suppliers were paid $13,500 during the month of June. Wilson eamed $15,700 of revenue on sales of the fertilizer bags. $5,500 of the revenue related to cash sales and the rest . were credit sales. There was no beginning balance in the Accounts Receivable account. COGS_ IMPACT ON CURRENT PERIOD CASH FLOW Inventory Bal $3,000 Net Impact on Current Period Cash Flow A/P Cash Bal $4,200 IMPACT ON CURRENT PERIOD EARNINGS A/R Revenue Net Impact on Current Period Earnings CUMULATIVE IMPACT ON BALANCE SHEET ELEMENTS LIABILITIES + EQUITY: ASSETS: Cumulative Change in Liabilities+ Equity Cumulative Change in Assets CHAPTER 8 HANDOUT I PAG