The following events were completed by Dana's Imports in September, Year $1$:

September $1$ Acquired $$53,000$ cash from the issue of common stock.

September $1$ Purchased $$34,500$ of merchandise on account with terms $\frac{2}{10},\frac{n}{30}.$

September $5$ Paid $$950$ cash for freight to obtain merchandise purchased on September $1.$

September $8$ Sold merchandise that cost $$12,250$ to customers for $$17,500$ on account, with terms $\frac{2}{10},\frac{n}{30}.$

September $8$ Returned $$1,050$ of defective merchandise from the September $1$ purchase to the supplier.

September $10$ Paid cash for the balance due on the merchandise purchased on September $1.$

September $20$ Received cash from customers of September $8$ sale in settlement of the account balances, but not within the discount

September $30$ Paid $$3,400$ cash for selling expenses.

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

b$.$ Prepare an income statement for the month ending September $30.$

c$.$ Prepare a statement of cash flows for the month ending September $30.$