The following events were completed by Dana's Imports in September, Year 1: Sept. 1 Acquired $51,000 cash from the issue of common stock. 1 Purchased $33,500 of merchandise on account with terms 2/10, n/30. 5 Paid $850 cash for freight to obtain merchandise purchased on September 1. 8 Sold merchandise that cost $11,750 to customers for $16,500 on account, with terms 2/10, n/30. 8 Returned $500 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 $3,100 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. 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. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.) Show less DANA'S IMPORTS Effect of Transactions on Financial Statements Using Horizontal Statements Model Balance Sheet Income Statement Assets = Liabilities + Stockholders' Equity Net Accounts Accounts Common Revenue - Expenses Retained + Income Cash + Inventory Receivable Payable Stock Earnings 51,000+ 51,000+ = Date Statement of Cash Flows 9/1 51,000 FA 9/1 9/5 + 9/8a. 9/8b. 9/8c. 9/10 9/20 9/30 Total + Prepare an income statement for the month ending September 30. DANA'S IMPORTS Income Statement For the Month Ended September 30, Year 1 Operating expenses Prepare a statement of cash flows for the month ending September 30. (Cash outflows should be indicated with a minus sign.) DANA'S IMPORTS Statement of Cash Flows For the Month ended September 30, Year 1 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities: Cash flows from financing activities: Net cash flow from financing activities Net change in cash Ending cash balance