ook rint Tences Northwest Sales had the following transactions in Year 1: 1. Acquired $62,000 cash from the issue of common stock. 2. Purchased $184,000 of merchandise for cash in Year 1. 3. Sold merchandise that cost $116,199 during the year under the following terms: $54,180 Cash sales 143,330 Credit card sales (The credit card company charges a 2.00 percent service fee.) 13,760 Sales on account (Record each part of the transaction on a separate line.) 4. Collected all the amount receivable from the credit card company. 5. Collected $12,659 of accounts receivable. 6. Paid selling and administrative expenses of $41,525. 7. Determined that 4.00 percent of the ending accounts receivable balance would be uncollectible. Required a. 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).

Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). b. Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flow for Year 1. Complete this question by entering your answers in the tabs below. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of ca the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), o Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). b. Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flow for Year 1. Complete this question by entering your answers in the tabs below. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of ca the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), o Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed