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During Year 1. Cowboy Ice Cream Company (CIC) purchased $25,000 of inventory on account. CIC sold inventory on account that cost $18,800 for $28,100. Cash

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During Year 1. Cowboy Ice Cream Company (CIC) purchased $25,000 of inventory on account. CIC sold inventory on account that cost $18,800 for $28,100. Cash payments on accounts payable were $15,600. There was $25,000 cash collected from accounts recevable. CIC also paid $4,500 cash for operating expenses. Assume that CIC started the accounting period with $20,500 in both cash and common stock Required 3. 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 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. Reg Req Bot Record the events in a horizontal statement model in the Cash Flow column, Use OA to designate operating activity, IA for investment activity, FA 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 catho COWBOY ICE CREAM COMPANY Effect of Elvants on the Financial Statements Balance Sheet Income Statement Assets Bront Liabiliti+ Stanto Stockholders' Equity Flows Accounts Co Accounts Common Retained Ravnho - Expenses Income Recolvable Inventory Payablo Stock Earnings 20.500 20,500 1 Beeld Bogbal + 20 2b 3 4 5 Endi bal $ 20,500 S 0 $ 0 $ $ 20,500 5 Os 0 5 05 Reg to E> b. Accounts receivable c. Accounts payable d. Gross margin Net income e. Net cash flow from operating activities

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