Brief Exercise 3-1 (Algo) Effect of inventory transactions on financial statements: Perpetual system LO 3- 1 Lucile Xi started a new outdoor clothing company in Year 1. The business experienced the following events during its first year of operation. Assume the new company uses the perpetual inventory system. 1. Acquired $110,000 cash from the issue of common stock. 2. Purchased clothing merchandise for $50,000 cash. 3. Sold clothing costing $30,000 for $65,000 cash. Record this transaction as two separate events (3a and 3b ). Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specificaliy, record the amounts of the events into the model, Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activites (IA), or financing activities (FA). The first transaction is shown as an example. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed