Milo Clothing experienced the following events during Year $1,$ its first year of operation:

Acquired $$11,500$ cash from the issue of common stock.

Purchased inventory for $$6,200$ cash.

Sold inventory costing $$3,720$ for $$6,324$ cash.

Paid $$900$ for advertising expense.

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. 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.