During Year 1, Hardy Merchandising Company purchased $25,000 of inventory on accountHardy 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 receivable. Hardy also paid $4,500 cash for operating expenses. Assume that Hardy started the accounting period with $20,500 in both cash and common stock.

Required:

a.Identify the events described in the preceding paragraph and show them in a horizontal financial statements model. The beginning balances are included in the table.

B. What is the balance of accounts receivable at the end of Year ? .

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 ?

e. Determine the amount of net cash flow from operating activities.

Milo Clothing experienced the following events during Year 1, its first year of operation:

1. Acquired $13,000 cash from the issue of common stock.

2. Purchased inventory for $6,700 cash.

3. Sold inventory costing $4,020 for $6,834 cash. 4. Paid $800 for advertising expense .

On April 6, Year 1, Home Furnishings purchased $39,000 of merchandise from Una Imports, terms 1/10 n/45On April Home returned $8,200 of the merchandise to Una Imports. Home paid cash for the merchandise on April 15Year 1 Required:

What is the amount that Home must pay Una Imports on April 15

b. Record the events in a horizontal financial statements model

C.How much must Home pay for the merchandise purchased if the payment is not made until April 20Year 1

d. Record the payment in Requirement c in a horizontal financial statements model

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{16}{|c|}{ HOME FURNISHINGS } \\ \hline \multicolumn{16}{|c|}{ Effect of Events on the Financial Statements } \\ \hline \multirow{3}{*}{ Events } & \multicolumn{9}{|c|}{ Balance Sheet } & \multicolumn{4}{|c|}{ Income Statement } & \multirow{3}{*}{\multicolumn{2}{|c|}{\begin{tabular}{c} Statement of Cash \\ Flow \end{tabular}}} \\ \hline & \multicolumn{3}{|c|}{ Assets } & \multirow{2}{*}{=A1} & \multirow{2}{*}{\begin{tabular}{l} Labilities \\ \begin{tabular}{c} Accounts \\ Payable \end{tabular} \end{tabular}} & \multicolumn{4}{|c|}{ Stockholders' Equity } & \multirow{2}{*}{ Revenue } & \multirow[b]{2}{*}{ - } & \multirow{2}{*}{ Expense } & \multirow{2}{*}{\begin{tabular}{c} Net \\ Income \end{tabular}} & & \\ \hline & Cash & + & inventory & & & & \begin{tabular}{l} Common \\ Stock \end{tabular} & & \begin{tabular}{l} Retained \\ Earnings \end{tabular} & & & & & & \\ \hline 1. Purchased inventory & & + & & = & & + & & +7 & & & - & & = & & \\ \hline 2. Retumed inventory & & + & & = & & + & & +7 & & & - & & = & & \\ \hline 3. Discount & & + & & = & & + & & + & & & - & & = & & \\ \hline 4. Paid Accounts Payable & & +2 & & =7 & & + & & +7 & & & -1 & & =P & & \\ \hline \end{tabular} HARDY MERCHANDISING COMPANY \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow{4}{*}{ Events } & \multicolumn{14}{|c|}{ HARDY MERCHANDISING COMPANY } \\ \hline & \multicolumn{5}{|c|}{ Assets } & Balance Sheot & \multirow{3}{*}{\begin{tabular}{l} Labilities \\ Accounts \\ Payable \end{tabular}} & \multirow{3}{*}{\begin{tabular}{l} + \\ + \end{tabular}} & \multicolumn{3}{|c|}{ Stockholders' Equily } & \multirow{3}{*}{ Revenue : } & \multicolumn{2}{|c|}{ Income St } \\ \hline & & & Accounts & & & \multirow{2}{*}{\begin{tabular}{l} = \\ = \end{tabular}} & & & Common & & Retained & & \multirow[t]{2}{*}{ - } & \multirow{2}{*}{ Expen } \\ \hline & Cash & + & Recelvable & + & Inventory & & & & Stock & + & Earnings & & & \\ \hline \begin{tabular}{l} Beginning balance \\ 1. Purchased inventory \end{tabular} & 20,500 & & & & & & & & 20,500 & & & & & \\ \hline \multicolumn{15}{|l|}{\begin{tabular}{l} Beginning balance \\ 1. Purchased inventory \end{tabular}} \\ \hline \multicolumn{15}{|l|}{\begin{tabular}{l} 1. Purchased imventory \\ 2a. Sold inventory \end{tabular}} \\ \hline \multicolumn{15}{|l|}{\begin{tabular}{l} 20. Sold inventory \\ 20. Inventary cont \end{tabular}} \\ \hline \multicolumn{15}{|l|}{\begin{tabular}{l} 2b. Inventory cont \\ 3. Paid Acoounts Payable \end{tabular}} \\ \hline \multicolumn{15}{|l|}{\begin{tabular}{l} 3. Pald Acoounts Payable \\ 4. Colected Aocounts Receivable \end{tabular}} \\ \hline \multicolumn{15}{|l|}{\begin{tabular}{l} 4. Collected Aocounts Receivable \\ 5. Paid expense \end{tabular}} \\ \hline Ending balance & 20,500 & + & 0 & + & 0 & = & 0 & + & 20.500 & + & 0 & 0 & - & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multirow{3}{*}{+} & \multirow{2}{*}{\multicolumn{3}{|c|}{ Stockholders' Equity }} & \multicolumn{5}{|c|}{ Income Statement } & \multirow{3}{*}{\begin{tabular}{c} Statement of Cash \\ Flows \end{tabular}} \\ \hline & & & & \multirow{2}{*}{ Revenue } & \multirow{2}{*}{ - } & \multirow{2}{*}{ Expenses } & \multirow[b]{2}{*}{=} & \multirow{2}{*}{ Net Income } & \\ \hline & \begin{tabular}{l} Common \\ Stock \end{tabular} & + & \begin{tabular}{l} Retained \\ Earnings \end{tabular} & & & & & & \\ \hline & 20,500 & & & & & & & & \\ \hline & & & & & & & & & 7 \\ \hline & & & & & & & & & 7 \\ \hline & & & & & & & & & \\ \hline & & & & & & & & & \\ \hline & & & & & & & & & \\ \hline 0+ & & & & & & & & & \\ \hline 0+ & 20,500 & + & 0 & 0 & - & 0 & = & 0 & of \\ \hline \end{tabular} Required: Record the events in a horizontal financial statements model. Note: In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed