On January 1, 2021, Los Angeles Inc started a business The company had the following accounting events during the first year of operation. 1. Started the business by issuing common stock for $125,000 cash. 2. Paid $98,750 cash to purchase inventory. 3 Sold merchandise that cost $50,000 for $112,500 on account. Hint : Think 3a and 3b for event 3 4 Paid $25,000 for operating expenses. 5 Wrote off $7,500 of inventory 6 Collected $100,000 cash from accounts receivable. REQUIRED 1. Record the preceding transactions in the horizontal statements model. 2. Prepare an income statement, a balance sheet, and a statement of cash flows. 3. Since Los Angeles Inc sold inventory for 112,500$ the company be able to recover more. What does horizontal model look like