Ultra Day Spa provided $87,050 of services during Year 1. All customers paid for the services with credit cards. Ultra submitted the credit card receipts to the credit card company immediately. The credit card company paid Ultra cash in the amount of face value less a 3 percent service charge. Required a. Show the credit card sales (Event 1) and the subsequent collection of accounts receivable (Event 2) in a horizontal statements model like the one shown next. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). (Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.)

ULTRA DAY SPA Horizontal Statements Model Income Statement Statement of Assets + + Event Cash Balance Sheet Liab. Acct. Rec. 84,439 X (84,439) X Equity Ret. Ear. Revenue Net Income Expense 2,612 Cash Flows + + 87,050 = 2. 84,439 X + + 84,439X OA b. Based on this information alone, answer the following questions: (1) What is the amount of total assets at the end of the accounting period? (2) What is the amount of revenue reported on the income statement? (3) What is the amount of cash flow from operating activities reported on the statement of cash flows? (Round your answers to nearest whole dollar.) X Answer is complete but not entirely correct. Total assets |(1) (2) (3) Revenue recognized Cash flow from operating activities $ 84,439 X $ 87,050 $ 84,439 X