Milo Clothing experienced the following events during 2018, its first year of operation:

1. Acquired $18,500 cash from the issue of common stock.
2. Purchased inventory for $6,500 cash.
3. Sold inventory costing $3,900 for $6,630 cash.
4. Paid $950 for advertising expense.

Required

Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank

Milo Clothing experienced the following events during 2018, its first year of operation: 1. Acquired $18,500 cash from the issue of common stock. 2. Purchased inventory for $6,500 cash. 3. Sold inventory costing $3,900 for $6,630 cash. 4. Paid $950 for advertising expense. Required Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) MILO CLOTHING Effect of Events on the Financial Statements Assets = Stockholders' Equity Cash + Inventory = Common Retained Revenue - Expenses = Stock Earnings 18,500 + = 18,500+ 01 - 0= Event Net Income Statement of Cash Flows 1. + + 3b. + Total 18,500 + 0 = 18,500 + 0