Exercise 3-5A (Algo) Recording inventory transactions in a financial statements model LO 3-1 Milo Clothing experienced the following events during Year 1, its first year of operation: 1. Acquired $14,000 cash from the issue of common stock. 2. Purchased inventory for $5,700 cash. 3. Sold inventory costing $3,420 for $5,814 cash. 4. Paid $700 for advertising expense. Required: Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in tash. If the element is not affected by the event, leave the cell blank. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) MILO CLOTHING Effect of Events on the Financial Statements Stockholders' Equity Assets Event Common Cash + Inventory Stock Retained Revenue Expenses Earnings Net Income Statement of Cash Flows 1. 2. Ja 36. 4 Total . . " .