Exercise 4-3A (Algo) Effect of Inventory transactions on the Income statement and statement of cash flows: Perpetual system LO 4-1 During Year 1, Hardy Merchandising Company purchased $22,000 of inventory on account. Hardy sold inventory on account that cost $16.500 for $24,800. Cash payments on accounts payable were $13,800. There was $22,100 cash collected from accounts receivable. Hardy also paid $4,200 cash for operating expenses. Assume that Hardy started the accounting period with $19,000 in both cash and common stock. Required a. 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 cash. If the element is not affected by the event, leave the cell 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 margin and net income for Year 1? e. Determine the amount of net cash flow from operating activities. Complete this question by entering your answers in the tabs below. Req A Event 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 cash. 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.) Beg. bal 1. 2a. 2b 3 4. 5. End bal Req B to E Cash 19,000+ + + 13,800 + 22,000+ 4,200+ $ 59,000+ Assets Accounts Receivable S + + 0+ Inventory S HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Balance Sheet Liabilities + Stockholders' Equity Accounts Common Retained Payable Stock Earnings 19,000+ 0 = $ 0 + + + DETOKS $ 19,000 +1 $ 0 Revenue Expenses = Reg A $ Income Statement 0 = FAKE NE SUXO = END HOLDIN = = Net Income = Statement of Cash Flows 0= $0 $ Req B to E > 0 4 NA

Exercise 4-3A (Algo) Effect of Inventory transoctions on the income statement and statement of cash flows: Perpetual system LO 4-1 During Year 1 Hardy Merchandising Compgny purchased $22.000 of inveraco on account Hatdy sold inventory on accoum that cas: Hardy alto paid $4,200 cash for opernting expenses. Assume that Hardy stanted the bccourting period with $19000 in both cash and common stock. Requlred a. Record the events in a horutontal statemect model, In the Cash Flowr column, use OA to designate operatng actwty, iA for imvestmeat actirly. FA for financing actuby, or NC for net change in cosh if the element is nof affected by the event. leave the cell blank. b. What is the belence of accounts recelvable at the end of Kear it? c. What is the balance of accounts payable ot the end of Vear I? d. What are the amounts of gross mergin and pet income for Vear 17 e. Desermine the amount of net cash flow from operabing activies Complete this questoon by entering your answers in the tabs belew. Exercise 4-3A (Algo) Effect of Inventory transactions on the Income statement ond statement of cash flows: Perpetual system LO 4-1 During Year t, Hardy Merchandising Company purchased $22000 of inventory on account. Hardy sold inventory on account that cost $16,500 for $24,800. Cash payments on accounts payable were $13,800. There was $22,100 cash collected from accounts receivable. Hardy also paid \$4,200 cash for operating expenses. Assume that Hardy started the accounting period with $19.000 in both cash and common stock. Required 0. 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 cash. If the element is not affected by the event, leave the cell blank. b. What is the baiance 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 amounts of gross margin and net income for Year 1 ? e. Determine the amount of net cash flow from operating activities. 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 ? (Indicate cash outflows with minus sign.)