Ultra Day Spa provided $94,350 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 Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element is not affected by the event. (Enter any decreases to account balances with a minus sign. Round your answers to nearest whole dollar.)

ULTRA DAY SPA

Horizontal Statements Model

Balance Sheet

Income Statement

Assets

=

Liab.

+

Equity

Statement of

Event

Cash

+

Acct. Rec.

Ret. Ear.

Revenue

Expense

=

Net Income

Cash Flows

1.

+

=

+

=

2.

+

=

+

=

b. Based on this information alone, answer the following questions:

1. (1) What is the amount of total assets at the end of the accounting period?
2. (2) What is the amount of revenue reported on the income statement?
3. (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.)

(1)	Total assets
(2)	Revenue recognized
(3)	Cash flow from operating activities