Exercise 3-4A (Algo) Effect of inventory transactions on the income statement and statement of cash flows: Perpetual system LO 3-1 (1) During Year 1, Hardy Merchandising Company purchased $23,000 of inventory on account. (2) Hardy sold inventory on account that cost $17,300 for $25,900. (3) Cash payments on accounts payable were $14,400. (4) There was $23,100 cash collected from accounts receivable. (5) Hardy also paid $4,300 cash for operating expenses. Assume that Hardy started the accounting period with $19,500 in both cash and common stock. Required: Identify the events described in the preceding paragraph and record them in a horizontal statements model like the following one. Also, in the Statement of Cash Flows column, classify the cash flows

Required:

Identify the events described in the preceding paragraph and record them in a horizontal statements model like the following one. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA).

What is the balance of accounts receivable at the end of Year 1?

What is the balance of accounts payable at the end of Year 1?

What are the amounts of gross margin and net income for Year 1?

Determine the amount of net cash flow from operating activities.

Identify the events described in the preceding paragraph and record them in a horizontal statements model like the following one. Also, in the Statement of Cash activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Complete this question by entering your answers in the tabs below. 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 1? Note: Indicate cash outflows with minus sign