Exercise 3.4A (Algo) Effect of inventory transactions on the income statement and statement of cash flows: Perpetual system LO 3-1 During Year 1, Haroy Merchandising Company purchased $19,000 of inventory on account Hardy sold inventory on account that cost $14,300 for $21,400. Cash payments on accounts payable were $11,900. There was $19,000 cast collected from acrounts recegrable Hardy also paid $3,900 cash foc operating experses. Assume that Hardy started the accounting period wath $27500 in toot cher and common stock. Required investment activity. FA for financing activity, or NC for net change in cashy if the efenent is not affected by the event, leaye the cell blank b. What is the batance 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 grose margin and net income for veor of 4. Deternine the amount of net coshi flow from operating activites: Complete this question by entering your answers in the tabs below. Record the events in a horizontal statement moded. In the Cash Flow column, use OA to designate operating activity, in for investment activity, FA for fina the element is not affected by the event, leave the cell blank. (Not overy cel will coquire antry. Enter any decreases to accounc balances and cash eutflow Exercise 3.4A (Algo) Effect of inventory transactions on the income statement and statement of cash flows: Perpetual system LO 3-1 During Year 1, Haroy Merchandising Company purchased $19,000 of inventory on account Hardy sold inventory on account that cost $14,300 for $21,400. Cash payments on accounts payable were $11,900. There was $19,000 cast collected from acrounts recegrable Hardy also paid $3,900 cash foc operating experses. Assume that Hardy started the accounting period wath $27500 in toot cher and common stock. Required investment activity. FA for financing activity, or NC for net change in cashy if the efenent is not affected by the event, leaye the cell blank b. What is the batance 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 grose margin and net income for veor of 4. Deternine the amount of net coshi flow from operating activites: Complete this question by entering your answers in the tabs below. Record the events in a horizontal statement moded. In the Cash Flow column, use OA to designate operating activity, in for investment activity, FA for fina the element is not affected by the event, leave the cell blank. (Not overy cel will coquire antry. Enter any decreases to accounc balances and cash eutflow
