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During Yeor 1, Hardy Merchandising Compony purchased $40,000 of inventory on account. Hardy sold inventory on account that cost $24,500 for $38,000. Cash payments on accounts payable were $22,000. There was $26,000 cash collected from accounts receivoble. Hardy also paid $5,100 cash for operating expenses. Assurne that Hardy storted the accourting period with $20,000 in both cash ond common stock. Required a Record the events in a horizontal stotement model. In the Cash Aow column, use OA to designate operating activity, IA for imvestment activity, FA for finoncing 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.

During Yeor 1, Hardy Merchandising Compony purchased $40,000 of inventory on account. Hardy sold inventory on account that cost $24,500 for $38,000. Cash payments on accounts payable were $22,000. There was $26,000 cash collected from accounts receivoble. Hardy also paid $5,100 cash for operating expenses. Assurne that Hardy storted the accourting period with $20,000 in both cash ond common stock. Required a Record the events in a horizontal stotement model. In the Cash Aow column, use OA to designate operating activity, IA for imvestment activity, FA for finoncing 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During Yeor 1 Hardy Merchandising Compony purchased $40,000 of inventory on account. Hardy sold inwentory on occount that cost $24,500 for $38,000. Cash payments on accounts payable were $22,000. There was $26,000 cash collected from accounts receivoble. Hardy also paid $5,100 cosh for operating expenses. Assume that Hardy storted the occournting period with $20,000 in both cash ond common stock. Required a Record the events in a horizontal stotement model. In the Cash Aow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cosh. If the element is not affected by the event, leave the cell blonk b. Whot is the balance of accounts receivoble at the end of Year 1? c Whot is the balance of accounts payable at the end of Year 1? d What are the amounts of gross morgin and net income for Year 1? e. Determine the omount 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 04 to designate operating activity, IA for investment activity, FA for financing activity, or NC fa cash. If the eement is ot affected by the event, leave the cell blank. (Not every cell will require entry. Enter any decreases to sccount balances and cash outflows witha minu HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Balance Sheet Income Statement statement of Cash stockholders Equity Retalned Earnings Event Assets Llabl tes + Net Flows Revenue - = Expenses !! Accounts Common Accounts Racelvable Income Cash • Inventory Payable stock Beg bal 20 000 + 20 000 + 1. 40.000 - 40 000 + 38 000+ 38,000 - OA OA OA 22.000 + 22 000 - 26 000 + 25 000- 5 100- 5 100 5. 5 100+ $ 5. 100) ONC $ 40000 S 15 000 + 5 20 000 + S OS 33 000- S 5 100- S End ba 13900+ 5 12.000+ - Reg B to E
Transcribed Image Text:During Yeor 1 Hardy Merchandising Compony purchased $40,000 of inventory on account. Hardy sold inwentory on occount that cost $24,500 for $38,000. Cash payments on accounts payable were $22,000. There was $26,000 cash collected from accounts receivoble. Hardy also paid $5,100 cosh for operating expenses. Assume that Hardy storted the occournting period with $20,000 in both cash ond common stock. Required a Record the events in a horizontal stotement model. In the Cash Aow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cosh. If the element is not affected by the event, leave the cell blonk b. Whot is the balance of accounts receivoble at the end of Year 1? c Whot is the balance of accounts payable at the end of Year 1? d What are the amounts of gross morgin and net income for Year 1? e. Determine the omount 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 04 to designate operating activity, IA for investment activity, FA for financing activity, or NC fa cash. If the eement is ot affected by the event, leave the cell blank. (Not every cell will require entry. Enter any decreases to sccount balances and cash outflows witha minu HARDY MERCHANDISING COMPANY Effect of Events on the Financial Statements Balance Sheet Income Statement statement of Cash stockholders Equity Retalned Earnings Event Assets Llabl tes + Net Flows Revenue - = Expenses !! Accounts Common Accounts Racelvable Income Cash • Inventory Payable stock Beg bal 20 000 + 20 000 + 1. 40.000 - 40 000 + 38 000+ 38,000 - OA OA OA 22.000 + 22 000 - 26 000 + 25 000- 5 100- 5 100 5. 5 100+ $ 5. 100) ONC $ 40000 S 15 000 + 5 20 000 + S OS 33 000- S 5 100- S End ba 13900+ 5 12.000+ - Reg B to E
During Year 1, Hardy Merchandising Company purchased $40,000 of inventory on account. Hardy sold inverntory on occount that cost $24,500 for $38,000. Cash payments on occounts payable were $22,000. There was $26,000 cash collected from accounts receivoble. Hardy also paid $5,100 cosh for operating expenses. Assume that Hardy storted the accounting period with $20,000 in both cash ond 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 cosh. If the element is not affected by the event, leave the cell blank b. Whot 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 omount of net cash flow from operating activities. Complete this question by èntering your answer in the tabs below. Req A Reg B to What is the balance of accounts receivable, accounts payable, amounts of gross margin, net income and net cash flow Trom operating activities at the end of Year 1? (Indicate cash outflows with minus sign.) b. Accounts recelvable cAccounts payable d Gross margin Net Income 2. Net cash flow from operating activities < Req A
Transcribed Image Text:During Year 1, Hardy Merchandising Company purchased $40,000 of inventory on account. Hardy sold inverntory on occount that cost $24,500 for $38,000. Cash payments on occounts payable were $22,000. There was $26,000 cash collected from accounts receivoble. Hardy also paid $5,100 cosh for operating expenses. Assume that Hardy storted the accounting period with $20,000 in both cash ond 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 cosh. If the element is not affected by the event, leave the cell blank b. Whot 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 omount of net cash flow from operating activities. Complete this question by èntering your answer in the tabs below. Req A Reg B to What is the balance of accounts receivable, accounts payable, amounts of gross margin, net income and net cash flow Trom operating activities at the end of Year 1? (Indicate cash outflows with minus sign.) b. Accounts recelvable cAccounts payable d Gross margin Net Income 2. Net cash flow from operating activities < Req A
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