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Milo Clothing experienced the following events during Year $1,$ its first year of operation:

Acquired $$30,000$ cash from the issue of common stock.

Purchased inventory for $$15,000$ cash.

Sold inventory costing $$9,000$ for $$20,000$ cash.

Paid $$1,500$ for advertising expense.

Required:

Record the events in a horizontal financial statements model.

Note: In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input $-$ leave cells blank if there is no corresponding input needed.

Answer is complete but not entirely correct.

$\backslash$table$[[$MILO CLOTHING$],[$Effect of Events on the Financial Statements$],[$Event$,$Balance Sheet,Income Statement,$\{$

$\backslash$table$[[$Statement of Cash$],[$Flows$]]\}],[$Assets$,=,$Stockholders' Equity,Revenue,$-,$Expenses,$=,\backslash$table$[[$Net$],[$Income$]]],[$Cash$,+,$Inventory,$=,\backslash$table$[[$Common$],[$Stock$]],+,\backslash$table$[[$Retained$],[$Earnings$]]],[1.,30,000$vv$,+,,=,30,000,+,,,-,,=,,30,000$vv$,$FA$],[2.,(15,000)$vv$,+,15,000,=,,+,,,-,,=,,(15,000)$vv$,$OA$,$V$],[3$a$,20,000$vv$,+,,=,,+,20,000$vv$,20,000$vv$,-,,=,20,000,20,000$vv$,$OAvv$],[3$b$.,,+,(9,000),=,,+,(9,000),0$vv$,-,(9,000)\backslash$times $,=,9,000\backslash$times $,0$V$,],[4,(1,500),+,,=,,+,(1,500),0$vv$,-,(1,500)\backslash$times $,=,1,500\backslash$times $,(1,500),$OA$],[$Total$,33,500,+,6,000,=,30,000,+,9,500,20,000,-,(10,500),=,30,500,33,500,$NC$]]$

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