God is with me & Global and we: erton hm.tpx 750 points Exercise 3 4 Effect of inventory transactions on the income statement and statement of cash flows: Perpetual system LO During 2014, King Merchandising Company puchased $30,000 of inventory on account. King sold inventory on account that cost $22,500 for $31,000. Cash payments on accounts payable were $18,000. There was S22,000 cash collected from accounts recevable. King also paid $4.200 cash for operating expenses Assume thakt King stated the accounting period with $18,000 in both cash and common stock Required a. Recod the above events in a honizontal statement model. In the Cash Flow column, use OA to designate operating actvity, lA for investment activity, FA for financing actmty, NC for net change in cash and NA to indcate the element is not affected by the event. The beginning balances have been recorded as an ecample. (Enter any decreases to account balances and cash oudlows with a minus sig Effect of Events on the Financial Statements Balance Shees Income Statement Liabilities Stockholders Equity Statement of Cash ExpensesNet Flows Beg bal 2a End bal (12.000 30,000 b. What is the balance of accounts seceivable at the end of 2014