During Year 1, 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 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 12 e. Determine the amount of net cash flow from operating activities. Complete this question by entering your answers in the tabs below. REGA Reg B to Record the events in a horizontal statement model in the Cash Flow column, use OA to designate operating activity, IA for invest the element is not affected by the event, leave the cell blank. (Not every cell will require entry. Enter any decreases to account bal HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Income Statement Event Assets Accounts Recevable Balance Sheet Liabilities - Accounts Inventory Pavable Stockholders' Equity Common Retained Stock Earnings Revenue Expenses Net Income Cash decreases to account bal Income Statement vent Assets Accounts Recolvable HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Balance Sheet = Liabilities Stockholders' Equity Accounts Common Retained Revenue + Inventory - Payable Stock Earnings 24,000 + Cash + Expenses - Net Income 24,000 + eg al 1. 2a. 2b. . 3 +++++++ 4 = 5 End bal $ 24,000 $ 0 $ 0 S 0 $ 24,000 $ 0 $ 0 $ 0 $ 0 Heq 810 E> nt Net Income Statement of Cash Flows = $ 0 $ O eBook Complete this question by entering your answers in the tabs below. Print References Req A Req B to E What is the balance of accounts receivable, accounts payable, amounts of gross margin, ne operating activities at the end of Year 1? (Indicate cash outflows with minus sign.) b. Accounts receivable c. Accounts payable d. Gross margin Net income e. Net cash flow from operating activities