The following events were completed by Dana's Imports in September, Yeart Sept. 1 Acquired 553,000 cash from the issue of common stock. 1 Purchased 534,500 of merchandise on account with terms 2/10,30 Paid 950 cash for freight to obtain merchandise purchased on September 1. Sold merchandise that cost $12,250 to customers for $17.500 on account, with tens 3/10, 1/30 Returned $1,050 of defective merchandise from the September 1 purchase to the supplier 10 Paid cash for the balance due on the merchandise purchased on September 1. 20 Received cash from customers of September 8 sale in settlement of the account balances, but not within the discount period se bold 55,00 cash for calling expenses. Required a. Record each event in a statements model like the following one in the Cash Flow column, use o to designate operating activity, for investment activity. FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. 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. and cash outflows with a minus sign.) Date Statement of Cash Flows DANA'S IMPORTS Effect of Transactions on Financial Statements Using Horizontal Statements Model Balance Sheet Income Statement Assets Liabilities - Stockholders' Equity Net Accounts Cash Accounts Common Expenses Retained Revenue Inventory - Receivable Income Payable Stock Earninge 53,000 + 53,000 + 34 500 34.500 (950)+ + 950 17,500 17,500 17.500 17,500 + (12.250) (12250) 12,250 (12,250) (1.050) (1.050) + 53.000 FA (950) 971 9/1 9/5 9/8a 9/8b 9/8c 9/10 9/20 9/30 Total + + + $ 12.250 $ 33,450 $ 53,000 + $5.250 5 17 500 $ 5.250 552 050 $ 17,500 $ 22,150 $ 52,050 NO Required > Prepare an income statement for the month ending September 30. DANA'S IMPORTS Income Statement For the Month Ended September 30, Year 1 Selling and administrative expense Operating expenses Cost of goods sold Net sales Rent expense Selling and administrative expense DANA'S IMPORTS Statement of Cash Flows For the Month ended September 30, Year 1 Cash flows from operating activities $ 0 Net cash flow from operating activities Cash flows from investing activities: Cash flows from financing activities: 0 Net cash flow from financing activities Net change in cash 0 Ending cash balance $ 0