During Year 1. Hardy Merchandising Company purchased $14,000 of Inventory on account. Hardy sold inventory on account that cost $10,500 for $15.800. Cash payments on accounts payable were $8,800. There was $14,100 cash collected from accounts receivable, Hardy also paid $3,400 cash for operating expenses. Assume that Hardy started the accounting period with $25,000 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 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 blank Complete this question by entering your answers in the tabs below. Req Reg tot 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 fi 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 outlo Event Assets Accounts Receivable HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Balance Sheet Income Statement Liabilities + Stockholders' Equity Net Accounts Common Retained Revenue Expenses - + Inventory Income Payable Stock Earnings 25,000 Statement of Cash Flows Cash 25,000 NA Beg bal 1. 20 - Reg A 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 fo 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 ou HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Balance Sheet Income Statement Liabilities Stockholders' Equity Accounts Common Retained Revenue - Expenses + Inventory Payable Stock Earnings 25,000+ Event Assets Accounts Receivable Statement of Cash Flows Cash Net Income 25,000+ NA Beg bal 1. 2a 20 3. 4 5 End bal Reg B to E> 1 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 Year 12 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. Req Reg B to t What is the balance of accounts receivable, accounts payable, amounts of gross margin, net income and net cash flow from operating activities at the end of Year 12 (indicate cash outflows with minus sign) b. Accounts receivable Accounts payable d. Gross margin Net income Net cash flow from operating activities
