Chapter 5, Problem 14E

a)

To determine

Present the credit card sales and collection of accounts receivable in a horizontal statements model. 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.

b. (1)

To determine

Determine the amount of total assets at the end of the accounting period.

b. (2)

To determine

Determine the amount of revenue reported on the income statement.

b. (3)

To determine

Determine the amount of cash flows from operating activities reported on the statement of cash flows.

b. (4)

To determine

State the reasons that the company would accept credit cards instead of providing credit directly to its customers.