Music Flow is a streaming music service specializing in podcasts. Music Flow generates revenue through subscriptions that requires customers to pay using a credit card. Consider the following events for Music Flow in Year 1: 1. Music Flow earned $518,000 of subscription revenue during Year 1. 2. Music Flow submitted the credit card receipts to the credit card company immediately. The credit card company paid Music Flow cash in the amount of face value less a 4 percent service charge. 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. Event Number Cash Assets + 1. 2 Total 0+ *NC Net change in cash + + Accounts Receivable Balance Sheet Liabilities + Accounts Payable + + + 0 + Stockholders' Equity Common Stock + 0 + Retained Earnings 0 Revenue Income Statement Expenses 0 Net Income 0 Statement of Cash Flows 0 *NC

Music Flow is a streaming music service specializing in podcasts. Music Flow generates revenue through subscriptions that requires customers to pay using a credit card. Consider the following events for Music Flow in Year 1 : 1 Music Flow eamed $518,000 of subscription revenue during Year 1. 2 Music Flow submitted the credit card receipts to the credit card company immediately, The credit card company paid Music Flow cash in the amount of face value less a 4 percent service charge Required: Use a horizontal financial statements model to show how each event affects the balance sheet. income statenient, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statemient of Casti flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA) Note: Enter ony decreases to account balances and cash outflows with o minus sign. Leove celis blank if ho input is needed. Music Flow is a streaming music service specializing in podcasts. Music Flow generates revenue through subscriptions that requires customers to pay using a credit card. Consider the following events for Music Flow in Year 1 : 1. Music Flow eamed $518,000 of subscription revenue during Year 1. 2 Music Flow submitted the credit card receipts to the credit card company immediately. The credit card company paid Music Flow cash in the amount of face value less a 4 percent service charge Required: Use a hotizontal 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, classity the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA) Note: Enter any decreases to account bolances and cash outflows with a minus sign. Leave cells blank if no input is needed