On January 1, 2014, Laura started a small flower merchandising business that she named Lauras Flowers. The company experienced the following events during the first year of operation. 1. Started the business by issuing common stock for $20,000 cash. 2. Paid $14,000 cash to purchase inventory. 3. Sold merchandise that cost $8,000 for $18,000 on account. 4. Collected $15,000 cash from accounts receivable. 5. Paid $3,750 for operating expenses