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During Year 1, Hardy Merchandising Company purchased $19.000 of inventory on account. Hardy sold inventory on account that cost $14.300 for $21.400 Cash payments on

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During Year 1, Hardy Merchandising Company purchased $19.000 of inventory on account. Hardy sold inventory on account that cost $14.300 for $21.400 Cash payments on accounts payable were $11.900. There was $19.000 cash collected from accounts receivable Hardy also paid $3,900 cash for operating expenses. Assume that Hardy started the accounting period with $22,500 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 not 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 17 d. What are the amounts of gross margin and net income for Your 17 e. Determine the amount of net cash flow from operating activities Reg A Req B to 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, 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 outflows with a minus HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statement Balance Sheet Income Statement = Llabilities Stockholders' Equity Net Accounts Common + Inventory Expenses Retained Rovenue Income Payable Stock Earnings 22,500 Event Statement of Cash Flows Accounts Recevable Cash 22.500 Bog bal 1. 2a 2 3. 5 End, bal MA Raq toE > Saved 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 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 A Reg B to E 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 17 (Indicate cash outflows with minus sign.) B. Accounts receivable c. Accounts payable d. Gross margin Net Income e. Net cash flow from operating activities

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