Poole Company began the 2014 accounting period with $36,000 cash, $80,000 inventory, $70,000 common stock, and $46,000 retained earnings. During the 2014 accounting period, Poole experienced the following events: 1. Sold merchandise costing $51,500 for $92,900 on account to Mable's General Store. 2. Delivered the goods to Mable's under terms FOB destination. Freight costs were $500 cash. 3. Received returned goods from Mable's. The goods cost Poole Company $3,200 and were sold to Mable's for $4,700 4. Granted Mable's a $1,500 allowance for damaged goods that Mable's agreed to keep 5. Collected partial payment of $71,000 cash from accounts receivable. value: 1.00 points 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. (Leave no answer blank. Enter zero if applicable. Enter any decreases to account balances and cash outflows with a minus sign.) POOLE COMPANY Effect of Events on the Financial Statements Faulty Assets APUS TUUTUU 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. (Leave no answer blank. Enter zero applicable. Enter any decreases to account balances and cash outflows with a minus sign.) POOLE COMPANY Effect of Events on the Financial Statements Equity Common Retained Revenue - Expenses + Inventory Stock Earnings 80,000 = 70,000+ 46,000 Assets Accounts Receivable Net Income Statement of Cash Flows Event Cash NA 36,000 + + Bal. 1a. 1b. 2. 3a 3b. 4. 5. $ 36,000 + $ 70,000+ $ $ $ 46,000 $ 80,000 0+ 0 Total ols 0 $ 0 $ eBook & Resources eBook: LO 3-4 Determine the amount of net sales. b- 1. Prepare an income statement POOLE COMPANY Income Statement For the Year Ended December 31, 2014 Net sales revenue $ 86,700 Cost of goods sold Gross margin Operating expenses 0 500 Transportation-out Net income b- Prepare a balance sheet. 2. POOLE COMPANY Balance Sheet As of December 31, 2014 Assets $ 0 Total assets Liabilities Stockholders' Equity