Poole Company began the 2014 accounting period with $18,600 cash, $60,800 inventory, $49,100 common stock, and $30,300 retained earnings. During the 2014 accounting period, Poole experienced the following events:

1.	Sold merchandise costing $37,100 for $76,000 on account to Mables General Store.
2.	Delivered the goods to Mables under terms FOB destination. Freight costs were $320 cash.
3.	Received returned goods from Mables. The goods cost Poole Company $1,920 and were sold to Mables for $3,860.
4.	Granted Mables a $1,050 allowance for damaged goods that Mables agreed to keep.
5.	Collected partial payment of $52,800 cash from accounts receivable.

Required
a.	Record the events in a statements model like the one shown below. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. The first event is recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.)

Prepare an income statement.

Prepare a balance sheet.

Prepare a statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

POOLE COMPANY Effect of Events on the Financial Statements Assets Equity Net Income Statement of Cash Flows No Retained Revenue -Expenses= Earnings Cash +Accounts +InventoryCommon Stock+ 49,100 -+ Receivable Bal 18,600+ 60,800 30,300 NA 1b. 2 3b. 4 5 Total 18,600$ 0+$ 60,800=$ 49,100+$ 30,300 $ 0