The following events apply to Lewis and Harper, a public accounting firm, for the Year $1$ accounting period: The following events apply to Lewis and Harper, a public accounting firm, for the Year $1$ accounting perlod:

Performed $$77,000$ of services for clients on account.

Performed $$46,000$ of services for cash.

Incurred $$40,000$ of other operating expenses on account.

Pald $$18,000$ cash to an employee for salary.

Collected $$60,000$ cash from accounts recelvable.

Pald $$18,000$ cash on accounts payable.

Pald a $$6,000$ cash dividend to the stockholders.

Accrued salarles were $$3,200$ at the end of Year $1.$

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, classlfy

the cash flows as operating activities $($OA$),$ Investing activitles $($IA$),$ or financing activitles $($FA$).$ The first event is recorded as an

example.

b$.$ What is the amount of total assets at the end of Year $1?$

c$.$ What is the balance of accounts recelvable at the end of Year $1?$

d$.$ What is the balance of accounts payable at the end of Year $1?$

f$.$ What is net income for Year $1?$

g$.$ What is the amount of net cash flow from operating actlvitles for Year $1?$

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What is the net income and net cash flow from operating activities at the end of Year $1?$

Performed $$77,000$ of services for clients on account.

Performed $$46,000$ of services for cash.

Incurred $$40,000$ of other operating expenses on account.

Paid $$18,000$ cash to an employee for salary.

Collected $$60,000$ cash from accounts receivable.

Paid $$18,000$ cash on accounts payable.

Paid a $$6,000$ cash dividend to the stockholders.

Accrued salaries were $$3,200$ at the end of Year $1.$

Required:

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$).$ The first event is recorded as an example.

What is the amount of total assets at the end of Year $1?$

What is the balance of accounts receivable at the end of Year $1?$

What is the balance of accounts payable at the end of Year $1?$

What is net income for Year $1?$

What is the amount of net cash flow from operating activities for Year $1?$