Question

During Year 1. Hardy Merchandising Company purchased 517,000 of inventory on account Hardly sold inventory on account that cost $12.800 for $19,100 Cash payments on accounts payable were $10.600. There was $17.000 cash collected from accounts receivable Hardy also paid $3,700 cash for operating expenses. Assume that Hardy started the accounting period with $23.500 in both cash and common stock Required a. Record the events in a honzontal statement model. In the Cash Flow column. Se OA to designate operating activity. A for investment activity. A for financing activity or NC for net change in cash. If the element is not affected by the event, leave the cell blank b. What is the balance of accounts receivable at the end of Year 1? c. What is the balance of accounts payable at the end of Year 1? d. What are the amounts of gross margin and net income for Year 1? e. Determine the amount of net cash flow from operating activities Complete this question by entering your answers in the tabs below.

For the cut out statement (FA for financing, or NC for net change in cash . if the element is .....)

Answer 1

A B с D K L L M N o P Q Q R S T 1 a) 2 2 3 E F H 1 Hardy Merchandising Company Effects of Events on the financial statements Balance Sheet Income statement Statement of Cash flows 4 + Revenue Expenses Net Income Liabilities Accounts Payable Stockholders 'Equity Common Stock $ 23,500.00 + Retained Earnings 5 6 Beg. Bal Inventory + NA + + $ 17,000.00 = $ 17,000.00 + + Assets Accounts Events Cash + Receivables + Beg. Bal. $ 23,500.00 + + Purchased Inventory Sold Sold Inventory $ 19,100.00 + Inventory Cost $(10,600.00) + A/R collected $ 17,000.00 $(17,000.00) + Exp. Paid $ (3,700.00) + + + $ 26,200.00 + $ 2,100.00 + + + + $ 19,100.00 $ 19,100.00 $(12,800.00) + + $(12,800.00) + + $ 12,800.00 7 1) 8 2 (a) 9 2 (b) 10 3) 11 4) 12 5) 13 End. Bal 14 A/P Paid + $(10,600.00) + + NA $ 19,100.00 NA $(12,800.00) NA $(10,600.00) OA $ 17,000.00 OA $ (3,700.00) $ (3,700.00) OA $ 2,600.00 $ 2,700.00 NC + + $ (3,700.00) $ 2,600.00 $ 19,100.00 $ 4,200.00 = + $ 23,500.00 + $ 6,400.00 + $ 3,700.00 $ 16,500.00 15 b) $ 2,100.00 Accounts Receivables Accounts Payable $ 6,400.00 16 c) 17 d) 18 Sales $ 19,100.00 19 less: Cost of goods sold $(12,800.00) 20 Gross margin $ 6,300.00 21 Operating expenses $ (3,700.00) 22 Net income $ 2,600.00 23 e) 24 Cash flows from operating activities: 25 Cash inflow from customers $ 17,000.00 26 Cash outflow for inventory $(10,600.00) 27 Cash outflow for expenses $ (3,700.00) 28 Net cash flow from operating activi $ 2,700.00 O During Year 1. Hardy Merchandising Company purchased 517,000 of in $12.800 for $19,100. Cash payments on accounts payable were $10.600 Hardy also paid $3.700 cash for operating expenses. Assume that Hardy