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During Year 1 Hardy Merchandising Company purchased $27,000 of inventory on account. Hardy sold inventory on account that cost $20,300 for $30.400. Cash payments on
During Year 1 Hardy Merchandising Company purchased $27,000 of inventory on account. Hardy sold inventory on account that cost $20,300 for $30.400. Cash payments on accounts payable were $16,900. There was $27100 cash collected from accounts receivable. Hardy also paid $4.700 cash for operating expenses. Assume that Hardy started the accounting period with $21,500 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 12 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, Rega 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 for fina 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 Income Statement HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Balance Sheet Labrities Stockholders' Equity Accounts Inventory Common Revenue Retained Payable Stock Earnings 21,600 Event Assets Accounts Receivable Statement of Cash Flows Net Income Expenses Cash Beg bal 21,500 + + 20 21 3 4 5 End bal Reqto > Complete this question by entering your answers in the tabs below. Req A Req 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 12. (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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