Iupe Supply Company had the following transactions in 2014 1 Acquired $58,500 cash from the issue of common stock 2 Purchased $174,500 of merchandise for cash in 2014 3 Sold merchandise that cost $107,795 for $195,990 during the year under the following terms $ 45,120 Cash sales 143,450 Credit card sales (The credit card company charges a 3 25 percent service fee ) 7,420 Sales on account 4 Collected all the amount receivable from the credit card company 5 Collected $6,826 of accounts receivable 6 Paid selling and administrative expenses of $41,724 7 Determined that 3 75 percent of the ending accounts receivable balance would be uncollectible a Record the above events in a horizontal statements model like the following one In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA) and net change in cash (NC) The letters NA indicate that an element is not affected by the event (Enter any decreases to account balances and cash outflows with a minus sign Do not round intermediate calculations and round your final answers to nearest whole number ) IUPE SUPPLY COMPANY Horizontal Statements Model Event No Balance Sheet Income Statement Statement of Cash Flow Assets Equity Revenue Expense Net Income Cash Accounts Receivable Allowance Merchandise Inventory Common Stock Retained Earnings 1 2 3a 3b 3c 3d 4 5 6 7 Bal b 1 Prepare an income statement for 2014 (Round intermediate calculations and final answers to nearest whole dollar amount ) IUPE SUPPLY COMPANY Income Statement For the Year Ended 2014 Operating expenses Total operating expenses b 2 Prepare a statement of changes in stockholders equity for 2014 (Round intermediate calculations and final answers to nearest whole dollar amount ) IUPE SUPPLY COMPANY Statement of Changes in Stockholders Equity For the Year Ended 2014 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders equity b 3 Prepare a balance sheet for 2014 (Be sure to list the assets in the order of their liquidity Round intermediate calculations and final answers to nearest whole dollar amount ) IUPE SUPPLY COMPANY Balance Sheet As of the End of the Year 2014 Assets Total assets Liabilities Stockholders equity Total stockholders equity Total liabilities and stockholders equity b 4 Prepare a statement of cash flows for 2014 (Amounts to be deducted should be indicated with a minus sign ) IUPE SUPPLY COMPANY Statement of Cash Flows For the Year Ended 2014 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net cash flows from financing activities Net change in cash Ending cash balance

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Iupe Supply Company had the following transactions in 2014: 1. Acquired $58,500 cash from the issue of common stock. 2. Purchased $174,500 of merchandise for

Iupe Supply Company had the following transactions in 2014:

1.	Acquired $58,500 cash from the issue of common stock.
2.	Purchased $174,500 of merchandise for cash in 2014.
3.	Sold merchandise that cost $107,795 for $195,990 during the year under the following terms:


$	45,120	Cash sales
	143,450	Credit card sales (The credit card company charges a 3.25 percent service fee.)
	7,420	Sales on account

Collected all the amount receivable from the credit card company.

Collected $6,826 of accounts receivable.

Paid selling and administrative expenses of $41,724.

Determined that 3.75 percent of the ending accounts receivable balance would be uncollectible.

Record the above events in a horizontal statements model like the following one. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA) and net change in cash (NC). The letters NA indicate that an element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign. Do not round intermediate calculations and round your final answers to nearest whole number.)

IUPE SUPPLY COMPANY

Horizontal Statements Model

Event No.

Balance Sheet

Income Statement

Statement of Cash Flow

Assets

Equity

Revenue

Expense

Net Income

Cash

Accounts Receivable

Allowance

Merchandise Inventory

Common Stock

Retained Earnings

3a.

3b.

3c.

3d.

Bal.

b-1.

Prepare an income statement for 2014. (Round intermediate calculations and final answers to nearest whole dollar amount.)

IUPE SUPPLY COMPANY
Income Statement
For the Year Ended 2014



Operating expenses




Total operating expenses

b-2.

Prepare a statement of changes in stockholders equity for 2014. (Round intermediate calculations and final answers to nearest whole dollar amount.)

IUPE SUPPLY COMPANY
Statement of Changes in Stockholders Equity
For the Year Ended 2014
Beginning common stock

Ending common stock
Beginning retained earnings

Ending retained earnings
Total stockholders equity

b-3.

Prepare a balance sheet for 2014. (Be sure to list the assets in the order of their liquidity. Round intermediate calculations and final answers to nearest whole dollar amount.)

IUPE SUPPLY COMPANY
Balance Sheet
As of the End of the Year 2014
Assets




Total assets
Liabilities
Stockholders equity



Total stockholders equity
Total liabilities and stockholders equity

b-4.

Prepare a statement of cash flows for 2014. (Amounts to be deducted should be indicated with a minus sign.)

IUPE SUPPLY COMPANY
Statement of Cash Flows
For the Year Ended 2014
Cash flows from operating activities




Net cash flow from operating activities
Cash flows from investing activities
Cash flows from financing activities


Net cash flows from financing activities
Net change in cash

Ending cash balance