Exercise 3-4A (Algo) Effect of inventory transactions on the income statement and statement of cash flows: Perpetual system LO 3-1 During Yeac 1, Hardy Merchandising Company purchased $19,000 of inventory on account Hardy sold inventory on account that cost $14,300 for $21,400. Cash paymients on accounts payable were $11,900 There was $19,000 cash collected from accounts receivable Hardy ako paid $3,900 cash for operating expenses. Assume that Hardy started the accounting period with $22,500 in both cash and common stock Required Q. Record the events in a horizontal statement model. In the Cash Fiow column, use OA to designate operating activity, IA for investrient activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cef 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 marpin and net income for vear 1 ? -. Determine the amount of net cash flow from operating octivities. Complete this question by entering your answers in the tabs below. Exercise 3-4A (Algo) Effect of inventory transactions on the income statement and statement of cash flows: Perpetual system LO 3-1 During Yeac 1, Hardy Merchandising Company purchased $19,000 of inventory on account Hardy sold inventory on account that cost $14,300 for $21,400. Cash paymients on accounts payable were $11,900 There was $19,000 cash collected from accounts receivable Hardy ako paid $3,900 cash for operating expenses. Assume that Hardy started the accounting period with $22,500 in both cash and common stock Required Q. Record the events in a horizontal statement model. In the Cash Fiow column, use OA to designate operating activity, IA for investrient activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cef 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 marpin and net income for vear 1 ? -. Determine the amount of net cash flow from operating octivities. Complete this question by entering your answers in the tabs below