Ch Exercise 4-4A Recording inventory transactions in a financial statements model LO 4-1 Milo Clothing experienced the following events during Year 1, Its first year of operation: 1. Acquired $30,000 cash from the issue of common stock. 2. Purchased Inventory for $15,000 cash. 3. Sold Inventory costing $9,000 for $20,000 cash. 4. Pald $1,500 for advertising expense. Required Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding Input needed.) Assets MILO CLOTHING Effect of Events on the Financial Statements Stockholders' Equity Revenue Common Retained Expenses = Stock Earnings Net Income Statement of Cash Flows Event + 11 1 Cash + Inventory 30,000+ 15,000+ 20,000+ 2. TI ### 3a. 3b + + + + + 4. 1,500+ 66,500 + 0 0 0 + Total 0 0 =