Joe Roberts, a retired navy seal operator, started Special Ops Security, which focuses on providing personal protection to high$-$profile

individuals. The company experienced the following events during its first year of operations, Year $1$:

Acquired $$610,000$ cash from the issuance of common stock.

Special Ops Security incuried $$132,500$ of operating expenses on account during Year $1.$

The company made cash payments of $$107,500$ to reduce its accounts payable during Year $1.$

Required:

a$.$ Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of

cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify

the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$ The first transaction is shown as an

example.

b$.$ Is the amount of net income different from the net cash flow from operating activities during Year $1?$

Complete this question by entering your answers in the tabs below.

Required $A$

Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specif

model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$)$

Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.