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Exercise 2 - 8 B Supplies and the financial statements model Copy Express Inc. began the Year 3 accounting period with $ 9 , 0
Exercise B Supplies and the financial statements model
Copy Express Inc. began the Year accounting period with $ cash, $ of common stock, and
$ of retained earnings. Copy Express was affected by the following accounting events during
Year :
Purchased $ of supplies on account.
Earned and collected $ of cash revenue.
Paid $ cash on accounts payable.
Adjusted the records to reflect the use of supplies. A physical count indicated that $ of sup
plies was still on hand on December Year
Required
a Show the effects of the events on the financial statements using a horizontal statements model
like the following one. In the Cash Flows column, use OA to designate operating activity, IA
for investing activity, FA for financing activity, and NC for net change in cash. Use NA to
indicate accounts not affected by the event. The beginning balances are entered in the follow
ing example:
b Explain the difference between the amount of net income and amount of net cash flow from operat
ing activities.
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