CI During Year 1, Hardy Merchandising Company purchased $17,000 of inventory on account. Hardy sold inventory on account that cost $12,800 for $19,100 Cash payments on accounts payable were $10,600. There was $17,000 cash collected from accounts receivable, Hardy also paid $3,700 cash for operating expenses. Assume that Hardy started the accounting period with $23,500 in both cash and common stock Required a. Identify the events described in the preceding paragraph and show them in a horizontal financial statements model. The beginning balances are included in the table. b. What is the balance of accounts receivable at the end of Year 1? c. What is the balance of accounts payable at the end of Year 1? d. What are the amounts of gross margin and net income for Year 1? e. Determine the amount of net cash flow from operating activities. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Identify the events described in the preceding paragraph and show them in a horizontal financial statements model. The beginning balances are included in "FA" for financing activities, "IA" for investing activities and "NC" for net change in cash. Enter any decreases to account balances and cash outflows with a Input - leave cells blank if there is no corresponding Input needed.) HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Balance Sheet Liabilities Stockholders' Equity Account Common Retained Inventory Payable Stock Earnings 23,500 Revenue Income Statement Expenses - Net Income Assets Accounts Receivable Events Cash + + Beg. bal. 23,500 1. Pur. inv. 2a. 2b Sold inv. Inv. cost Pd. AP roll AD 3 A Check my work Required A Required B Required C Required D Required E Identify the events described in the preceding paragraph and show them in a horizontal financial statements model. The beginning balances are included in the table. (In th "FA" for financing activities, "IA" for investing activities and "NC' for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not Input - leave cells blank if there is no corresponding input needed.) HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Balance Sheet Liabilities + Stockholders' Equity Inventory Accounts Common Retained Payable Stock Earnings 23,500 Income Statement Expenses Revenue Net Income Events Assets Accounts Receivable Statement of Flows Cash 23.500 1. 2a 20. 3 Beg, bal Putiny Sold in In cost Pd. AP Coll. AR Pd. xp End, bal 4 5 23,500 - 23.500 Required 3 > Required a. Identify the events described in the preceding paragraph and show then balances are included in the table. b. What is the balance of accounts receivable at the end of Year 1? c. What is the balance of accounts payable at the end of Year 1? d. What are the amounts of gross margin and net income for Year 1? e. Determine the amount of net cash flow from operating activities. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E What is the balance of accounts receivable at the end of Year 1? Accounts receivable
