C2H1

Troy company earned $15,000 of cash revenue. Troy incurred $12,000 of utility expense on that account during year 1. The company made cash payments of $8,000 to reduce its accounts payable during year 1.

Required:

Show the affects of the events and the financial statements using a horizontal financial statements model like the following one. In the cash flow Carolyn, use OA to designate operating expenses, IA for investing activities, FA for financial activities, NCfor net change in cash and, NA to indicate the element is not affected by the event.

A.The balance of that account payable that would be reported on the December 31, year 1balance sheet

B.That amount of expenses that would be reported on the year 1 income statement

C.The amount of net cash flow from operating activities that would be reported on the year 1 statement of cash flows

D. The amount of retained earnings that would be reported on the year 1 balance sheet

Req A to D Show the Retained Req A to D Prey 7of12 Next >