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During 2018, Hardy Merchandising Company purchased $16,000 of inventory on account. Hardy sold Inventory on account that cost $12,000 for $18,000. Cash payments on accounts

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During 2018, Hardy Merchandising Company purchased $16,000 of inventory on account. Hardy sold Inventory on account that cost $12,000 for $18,000. Cash payments on accounts payable were $10,000. There was $16,000 cash collected from accounts receivable. Hardy also paid $3,600 cash for operating expenses. Assume that Hardy started the accounting period with $24,000 in both cash and common stock. Required a. 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, or NC for net change in cash. If the element is not affected by the event, leave the cell blank b. What is the balance of accounts receivable at the end of 2018? c. What is the balance of accounts payable at the end of 2018? d. What are the amounts of gross margin and net income for 2018? e. Determine the amount of net cash flow from operating activities. Complete this question by entering your answers in the tabs below. Reg to E 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, or NC for netch the element is not affected by the event, leave the cell blank. (Not every cell will require entry, Enter any decreases to account balances and cash outlaws with a minus sign.) Statement of Cash + + Accounts Receivable Inventory HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Balance Sheet Income Statement - Liabilities + Stockholders' Equity Accounts . Common Retained Revenue - Expenses Payable S tock Income Earning 24,000+ 16.000 - 16.000 18,000 Payable Cash Flows 24,000 (12,000) (10,000) (16,000) 3.600) $ 26,400 + $ 2,000+ $ 4,000 - $ 6,000 - $ 24,000 + $ 2.400 $ 18,000 - $ 15,600 - $ (3,600] 2.400 $ 2.400 NC

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