The following events were completed by Dana's Imports in September 2018: Sept. 1 Acquired $48,000 cash from the issue of common stock. 1 Purchased $32,000 of merchandise on account with terms 2/10, n/30. 5 Paid $700 cash for freight to obtain merchandise purchased on September 1. 8 Sold merchandise that cost $11,000 to customers for $18,500 on account, with terms 2/10, n/3e. 8 Returned $1,000 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. 30 Paid $3,150 cash for selling expenses. Required a. Record each event in a statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA 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. Date + 9/1 + + 911 9/5 DANA'S IMPORTS Effect of Transactions on Financial Statements Using Horizontal Statements Model Balance Sheet Income Statement Assets Liabilities + Stockholders Equity Statement of Cash Net Accounts Accounts Cash Flows Common Revenue Retained Expenses Income Receivable + Inventory Payable Stock Earnings 48.000 48 ODD 48,000 FA O + 0 32,000 32.000 04 0 0 0 0 0 (700) O O 0 0 0 0 (700) OA 0+ 18 500 o 0 18.500 18,500 O 18,500 0 0 0 + (1 ODD) (1 DDD) + 0 0 0 D $ ol $ O $ 0 $ 0 0- 0 0 0 0 OA O 0 0 D 0 OA (3.150) 0 0 0 0+ (3,150) 0 (3.150) (3, 150) OA S 44,150 $ 18.500 $ 31,000 $31.000 $ 48,000 $ 15,350 $ 18.500 $13.150 $ 15 350 S 44.150 NC 9/8 0 9/30 + 0 9/8c 9:10 9/20 9/30 3,150 Total Prepare an income statement for the month ending September 30. DANA'S IMPORTS Income Statement For the Month Ended September 30, 2018 Net sales Cost of goods sold Gross margin Operating expenses Selling and administrative expense $ 0 Net income Prepare a statement of cash flows for the month ending September 30. (Enter cash outflows as negative amounts.) DANA'S IMPORTS Statement of Cash Flows For the Month ended September 30, 2018 Cash flows from operating activities Inflow from customers Outflow for inventory Outflow for selling and administrative expense 0 $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Inflow from stock issue $ 0 0 0 Net cash flow from financing activities Net change in cash Plus. Beginning cash balance Ending cash balance $ 0