The Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $60,000 cash from the issue of common stock. 2. Purchased $65,000 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; freight cost of $900 paid in cash. 4. Sold inventory on account that cost $38,000 for $71,000. 5. Freight cost on the goods sold in Event 4 was $620. The goods were shipped FOB destination. Cash was paid for the freight cost. 6. Customer in Event 4 returned $4,200 worth of goods that had a cost of $2,150. 7. Collected $58,300 cash from accounts receivable. 8. Paid $59,200 cash on accounts payable. 9. Paid $2,600 cash for advertising expense. 10. Paid $3,100 cash for insurance expense. Required: a. Which of these events affect period (selling and administrative) costs? Which result in product costs? b. 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. Complete this question by entering your answers in the tabs below. Required A Required B) Which of these events affect period (selling and administrative) costs? Which sult in product costs? Note: Leave cells blank if no input is needed. Transaction 1 2 Cost 3 2.5 8 points Complete this question by entering your answers in the tabs below. Required A Required B Which of these events affect period (selling and administrative) costs? Which result in product costs? Note: Leave cells blank if no input is needed. Transaction Cost 10 10 1. 2 3. 4. Print 5. References 6 7. B. 9. 10. CRA Required B > Book Complete this question by entering your answers in the tabs below. Required A 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, recor 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). T example. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Hint THE PET STORE Horizontal Statements Model for Year 1 Prim DI Balance Sheet Income Statement Event Cash Assets Accounts Receivable Liabilities Stockholders' Equity Statement of Accounts Common Retained Revenue Expenses Net Income Cash Flows Inventory Payable Stock Earnings ferences 1. 60.000+ 60,000+ 60,000 FA - 2 3. 4a. 4 40 5. 6a 60. 7 B 9. 10. Balance NC Net change in cash NO