For each of the following transactions of a new accrual business, analyze the transaction with the spread sheet (in the cash flow column whether the item is from operations, investing, or financing). Then answer the related questions 1 & 2. 1. Your Company purchased merchandise inventory costing $50,000 on account from Vendor Company, terms 2/10, 1/30. 2. The goods sold in # I were FOB destination and the shipping costs of $290 were paid in cash. 3. Vendor Company was paid within the discount period. 4. On July 1, the company sold $25,000 of its inventory for $35,000 on account 3/10, 1/30. 5. The goods sold in #2 were FOB destination and the shipping costs were $600 and paid in cash. 6. Your customer paid on day 8. CF Assets Claims Cash AR Event No. Expense Expense Net Inc. Inventory OAIA /FA Acct Payable Common Stock Revenue Returns Discount Retained Earnings 120,000 + 14,000 9,000 + 125.000 1 + + + - + + + + 2 3 48 4b 5 6 Totals + + + + + 2. What is the ending balance in Inventory? What is the ending balance the cash account? What is the net income for the period? What is the net cash flow from operating activities? Transaction 1 is alan A. Cash entry B. Deferral entry C. Adjusting entry D. Accrual entry Transaction 5 is a/an A. asset source B. asset use C. asset exchange D. claims exchange