lomework (i) Help Save & Exit Subm (1) During Year 1, Hardy Merchandising Company purchased $25,000 of inventory on account. (2) Hardy sold inventory on account that cost $18,800 for $28,100. (3) Cash payments on accounts payable were $15,600. (4) There was $25,000 cash collected from accounts receivable. (5) Hardy also paid $4, 500 cash for operating expenses Assume that Hardy started the accounting period with $20, 500 in both cash and common stock. Required: a. Identify the events described in the preceding paragraph and record them in a horizontal statements model like the following one. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). 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. Identify the events described in the preceding paragraph and record them in a horizontal statements model like the following one. Also, in the Statement of Cash Flow activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. HARDY MERCHANDISING COMPANY 2 of 4 Next
lomework (i) Help Save & Exit Subm (1) During Year 1, Hardy Merchandising Company purchased $25,000 of inventory on account. (2) Hardy sold inventory on account that cost $18,800 for $28,100. (3) Cash payments on accounts payable were $15,600. (4) There was $25,000 cash collected from accounts receivable. (5) Hardy also paid $4, 500 cash for operating expenses Assume that Hardy started the accounting period with $20, 500 in both cash and common stock. Required: a. Identify the events described in the preceding paragraph and record them in a horizontal statements model like the following one. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). 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. Identify the events described in the preceding paragraph and record them in a horizontal statements model like the following one. Also, in the Statement of Cash Flow activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. HARDY MERCHANDISING COMPANY 2 of 4 Next
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:lomework (i) Help Save & Exit Subm (1) During Year 1, Hardy Merchandising Company purchased $25,000
of inventory on account. (2) Hardy sold inventory on account that cost $18,800 for $28,100. (3) Cash
payments on accounts payable were $15,600. (4) There was $25,000 cash collected from accounts
receivable. (5) Hardy also paid $4, 500 cash for operating expenses Assume that Hardy started the
accounting period with $20, 500 in both cash and common stock. Required: a. Identify the events
described in the preceding paragraph and record them in a horizontal statements model like the following
one. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA),
investing activities (IA), or financing activities (FA). 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. Identify the events described
in the preceding paragraph and record them in a horizontal statements model like the following one. Also,
in the Statement of Cash Flow activities (OA), investing activities (IA), or financing activities (FA). Note:
Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input
is needed. HARDY MERCHANDISING COMPANY 2 of 4 Next
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