During Year 1, Hardy Merchandising Company purchased $21,000 of inventory on account. Hardy sold inventory on account that cost $15,800 for $23,600. Cash payments on accounts payable were $13,100. There was $21,000 cash collected from accounts receivable. Hardy also paid $4,100 cash for operating expenses. Assume that Hardy started the accounting period with $18,500 in both cash and common stock. Required a. Record the events in a horizontal statement model. 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. 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. Reg A Reg B to E Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for finan- the element is not affected by the event, leave the cell blank. (Not every cell will require entry. Enter any decreases to account balances and cash outflows HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Income Statement Balance Sheet Statement of Cash Flows Stockholders' Equity Net %3D Income Assets = Liabilities Event Retained Revenue Expenses Accounts Common Accounts Receivable + Inventory= Cash Payable Stock Earnings 18,500+ Beg. bal. 18,500 + 1.
During Year 1, Hardy Merchandising Company purchased $21,000 of inventory on account. Hardy sold inventory on account that cost $15,800 for $23,600. Cash payments on accounts payable were $13,100. There was $21,000 cash collected from accounts receivable. Hardy also paid $4,100 cash for operating expenses. Assume that Hardy started the accounting period with $18,500 in both cash and common stock. Required a. Record the events in a horizontal statement model. 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. 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. Reg A Reg B to E Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for finan- the element is not affected by the event, leave the cell blank. (Not every cell will require entry. Enter any decreases to account balances and cash outflows HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Income Statement Balance Sheet Statement of Cash Flows Stockholders' Equity Net %3D Income Assets = Liabilities Event Retained Revenue Expenses Accounts Common Accounts Receivable + Inventory= Cash Payable Stock Earnings 18,500+ Beg. bal. 18,500 + 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![L. VVIIOL 15 Iie Daialice oi acluuiiS payavie al uie enu or Teai 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.
Reg A
Reg B to E
Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing
the element is not affected by the event, leave the cell blank. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with
HARDY MERCHANDISING COMPANY
Effect of Events on the Financial Statements
Balance Sheet
Income Statement
Statement of Cash
Assets
= Liabilities +
Stockholders' Equity
Event
Net
Flows
Revenue - Expenses
=
Retained
Accounts
Payable
Common
Income
Accounts
+]
Receivable
Cash
+ Inventory =
Stock
Earnings
Beg. bal.
18,500 +
18,500 +
1.
+
%3D
2a.
+
%3D
2b.
+
3.
+
+
4.
+
5.
+
$ 18,500 +
0 + $ 18,500 +
$
이 $
0 - $
0 =
$
End. bal.
2$
0 +
$
$
< Reg A
Req B to E >
< Prev
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Transcribed Image Text:L. VVIIOL 15 Iie Daialice oi acluuiiS payavie al uie enu or Teai 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.
Reg A
Reg B to E
Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing
the element is not affected by the event, leave the cell blank. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with
HARDY MERCHANDISING COMPANY
Effect of Events on the Financial Statements
Balance Sheet
Income Statement
Statement of Cash
Assets
= Liabilities +
Stockholders' Equity
Event
Net
Flows
Revenue - Expenses
=
Retained
Accounts
Payable
Common
Income
Accounts
+]
Receivable
Cash
+ Inventory =
Stock
Earnings
Beg. bal.
18,500 +
18,500 +
1.
+
%3D
2a.
+
%3D
2b.
+
3.
+
+
4.
+
5.
+
$ 18,500 +
0 + $ 18,500 +
$
이 $
0 - $
0 =
$
End. bal.
2$
0 +
$
$
< Reg A
Req B to E >
< Prev
Next >
2 of 5
Transcribed Image Text:During Year 1, Hardy Merchandising Company purchased $21,000 of inventory on account. Hardy sold inventory on account that cost
$15,800 for $23,600. Cash payments on accounts payable were $13,100. There was $21,000 cash collected from accounts receivable.
Hardy also paid $4,100 cash for operating expenses. Assume that Hardy started the accounting period with $18,500 in both cash and
common stock.
Required
a. Record the events in a horizontal statement model. 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.
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.
Reg A
Reg B to E
Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing
the element is not affected by the event, leave the cell blank. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with
HARDY MERCHANDISING COMPANY
Effect of Events on the Financial Statements
Income Statement
Balance Sheet
Statement of Cash
Flows
= Liabilities
Stockholders' Equity
Net
Assets
Event
Revenue - Expenses =
Income
Common
Retained
Accounts
Accounts
Receivable
Cash
+ Inventory =
Payable
Stock
Earnings
18,500 +
Beg. bal.
18,500 +
1.
< Prev
2 of 5
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