Problem 1-2 10 points Houston Inc was started on January 1,2020, and experienced the following events during its first year of operation. REQUIRED Record the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). See "Horizontal Statements Model" file on Canvas for guidance REQUIRED Use the preceding information to answer the following questions. (Hint:Identify the six events described in the paragraph and record them in a horizontal statements model before attempting to answer the questions.) a. What is the net income for the period? b. What amount of revenue will Milwaukee C0, report on the 2021 income statement? c. What amount of cash flow from revenue will Milwaukee Co. report on the statement of cash flows? d. What is the not cash flow from operating activities for the period? e. What is the difference between not income and net cash flow from operating activities for the period? 1. What is the amount of net cash flow from financing activities? g. What is the amount of net cash flow from investing activities? h. What are total assets, liabilities, and equity will Milwaukee Co. report on the year-end balance sheet? Please list all three items separatel 7 8 9 10 The Business Paid The Business Received The Business Collected The Business Performed $4,500 cash to purchase supplies. Treat this transaction as Operating Expenses paid. $11,000 cash in advance for services to be performed in the future. $35,000 cash from the account receivable created in Event 3. 60.0% of the services agreed to in Event 8 . REQUIRED Pecord the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classily the cash flows as oporating activities (OA), investing activities (A), or financing activities (FA). See "Horizontal Statements Model" file on Canvas for guidance. The following information is available for two different types of businesses for the 2020 accounting period. Texas CPAs is a service business that provides accounting services to small businesses. Miarni Inc is a merchandising business that sells sports clothing, trophies and medals to college students. AEQUiReD a. Prepare an income statement, a balance sheet, and a statement of cash flows for each of the companios. This is diflerent than completing a horizontal model. A horizontal modol can help organize the transactions. b. Why does the CPA firm not compute gross margin on its income statement? c. Which of the two businesses would have product costs or cost of goods? Why? d. Compare the assets of both companies. What assets do they heve in cormmon? What assets are diferent? Why? On January 1, 2021, Los Angeles inc started a business The company had the following accounting events during the first year of operation. cash. AEQUIRED 1. Pecord the proceding transactions in the horizontal statements model. 2 Propare an income statement, a balance sheet, and a statement of cash flows. 3. Since Los Anpeles inc sold imventory for s 112,500 the company be able to recover more than 20% of the $ 125,000 invested in the stock. Do you agree with this atatement? Why or why not? Please answer ellher yos or no. Hint : Think Net income generated by business setivity in the period compared to the original inveatment Problem 1-2 10 points Houston Inc was started on January 1,2020, and experienced the following events during its first year of operation. REQUIRED Record the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). See "Horizontal Statements Model" file on Canvas for guidance REQUIRED Use the preceding information to answer the following questions. (Hint:Identify the six events described in the paragraph and record them in a horizontal statements model before attempting to answer the questions.) a. What is the net income for the period? b. What amount of revenue will Milwaukee C0, report on the 2021 income statement? c. What amount of cash flow from revenue will Milwaukee Co. report on the statement of cash flows? d. What is the not cash flow from operating activities for the period? e. What is the difference between not income and net cash flow from operating activities for the period? 1. What is the amount of net cash flow from financing activities? g. What is the amount of net cash flow from investing activities? h. What are total assets, liabilities, and equity will Milwaukee Co. report on the year-end balance sheet? Please list all three items separatel 7 8 9 10 The Business Paid The Business Received The Business Collected The Business Performed $4,500 cash to purchase supplies. Treat this transaction as Operating Expenses paid. $11,000 cash in advance for services to be performed in the future. $35,000 cash from the account receivable created in Event 3. 60.0% of the services agreed to in Event 8 . REQUIRED Pecord the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classily the cash flows as oporating activities (OA), investing activities (A), or financing activities (FA). See "Horizontal Statements Model" file on Canvas for guidance. The following information is available for two different types of businesses for the 2020 accounting period. Texas CPAs is a service business that provides accounting services to small businesses. Miarni Inc is a merchandising business that sells sports clothing, trophies and medals to college students. AEQUiReD a. Prepare an income statement, a balance sheet, and a statement of cash flows for each of the companios. This is diflerent than completing a horizontal model. A horizontal modol can help organize the transactions. b. Why does the CPA firm not compute gross margin on its income statement? c. Which of the two businesses would have product costs or cost of goods? Why? d. Compare the assets of both companies. What assets do they heve in cormmon? What assets are diferent? Why? On January 1, 2021, Los Angeles inc started a business The company had the following accounting events during the first year of operation. cash. AEQUIRED 1. Pecord the proceding transactions in the horizontal statements model. 2 Propare an income statement, a balance sheet, and a statement of cash flows. 3. Since Los Anpeles inc sold imventory for s 112,500 the company be able to recover more than 20% of the $ 125,000 invested in the stock. Do you agree with this atatement? Why or why not? Please answer ellher yos or no. Hint : Think Net income generated by business setivity in the period compared to the original inveatment