Exercise 3-4A (Algo) Effect of inventory transactions on the income statement and statement of cash flows: Perpetual system LO 3-1 During Yeat 1. Hardy Merchandasing 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 cash collected from accounts receivable Hardy aleo pasd $3,900 cash for operating expenses. Assume that Hardy started the accounting period with $22,500 in both cast and common stock. Required a. Record the events in a horzontal statement model in the Casif Flow column, use OA to designate operating actwisy, iA for invesfment activity, FA for financing activity, or NC for net change in cashi th the element is not affected by the event, leave the cell blank b. What is the balance of accounts recelvable at the end of Year 1 ? c. What is the balance of accounts payable at the end of Year 1 ? d. What are the smounts of gross margin and net income for Year 1? e. Delermine the amount of net cash frow from operating activities Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. What is the balance of accounts recelvable, accounts payable, amounts of gross margin, net income and net cash flow from operating activities at the end of Year 1 ? (Indicate cash outflows with minus sign.) Exercise 3-4A (Algo) Effect of inventory transactions on the income statement and statement of cash flows: Perpetual system LO 3-1 During Yeat 1. Hardy Merchandasing 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 cash collected from accounts receivable Hardy aleo pasd $3,900 cash for operating expenses. Assume that Hardy started the accounting period with $22,500 in both cast and common stock. Required a. Record the events in a horzontal statement model in the Casif Flow column, use OA to designate operating actwisy, iA for invesfment activity, FA for financing activity, or NC for net change in cashi th the element is not affected by the event, leave the cell blank b. What is the balance of accounts recelvable at the end of Year 1 ? c. What is the balance of accounts payable at the end of Year 1 ? d. What are the smounts of gross margin and net income for Year 1? e. Delermine the amount of net cash frow from operating activities Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. What is the balance of accounts recelvable, accounts payable, amounts of gross margin, net income and net cash flow from operating activities at the end of Year 1 ? (Indicate cash outflows with minus sign.)
