Milo Clothing experienced the following events during Year 1, Its first year of operation: 1. Acquired $30,000 cash from the issue of common stock. 2. Purchased Inventory for $15,000 cash. 3. Sold Inventory costing $9,000 for $20,000 cash. 4. Pald $1,500 for advertising expense. Required 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.) Assets MILO CLOTHING Effect of Events on the Financial Statements Stockholders' Equity Common Retained Rovenue Expenses = Stock Earnings Event Net Income Statement of Cash Flows Cash Inventory . . 1 2 IN 3a 35 4 Total 0 0 0 0 0 0 0 Ho Designs experienced the following events during Year 1, its first year of operation: 1. Started the business when it acquired $70,000 cash from the issue of common stock. 2. Paid $41,000 cash to purchase inventory. 3. Sold inventory costing $37,500 for $56,200 cash. 4. Physically counted inventory showing $3,200 inventory was on hand at the end of the accounting period. Required a. Determine the amount of the difference between book balance and the actual amount of inventory as determined by the physical count Dilforenco in book and actual inventory