Marcus Xavier noticed that many small rural towns did not have retail sporting goods outlets. To address this need, Marcus created Xavier Sporting Goods. The business experienced the following events during its first year of operation. 1. Acquired $78,000 cash from the issue of common stock. 2. On February 1, Year 1, Xavier Sporting Goods purchased merchandise inventory for $53,000 on account from True Sports Incorporated with terms 5/10, n/30. 3. On February 8, Year 1, Xavier Sporting Goods settled the payable with True Sports Incorporated Record the recognition of the discount as 3a and the payment of the payable as 3b. Required: 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. The first transaction is shown as an example. Note: In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require an input - leave cells blank if there is no corresponding input needed. Balance Sheet Income Statement Liabilities + Stockholders' Equity Common Retained Revenue Event Number Assets Cash Accounts + Inventory Payable 1. 78,000 + 2. 3. + = Total 78,000 + 0 + Stock Earnings 78,000+ 0+ 78,000 + 0 Expenses = Net Income Statement of Cash Flows 78,000 FA 0 78,000