(1) During Year 1, Hardy Merchandising Company purchased $28,000 of inventory on account. (2) Hardy...
50.1K
Verified Solution
Link Copied!
Question
Accounting
(1) During Year 1, Hardy Merchandising Company purchased $28,000 of inventory on account. (2) Hardy sold inventory on account that cost $21,000 for $31,500. (3) Cash payments on accounts payable were $17,500. (4) There was $28,000 cash collected from accounts receivable. (5) Hardy also paid $4,800 cash for operating expenses. Assume that Hardy started the accounting period with $22,000 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. 
(1) During Year 1, Hardy Merchandising Company purchased $28,000 of inventory on account. (2) Hardy sold inventory on account that cost $21,000 for $31,500. (3) Cash payments on accounts payable were $17,500. (4) There was $28,000 cash collected from accounts receivable. (5) Hardy also paid $4,800 cash for operating expenses. Assume that Hardy started the accounting period with $22,000 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 recelvable 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
(1) During Year 1, Hardy Merchandising Company purchased $28,000 of inventory on account. (2) Hardy sold inventory on account that cost $21,000 for $31,500. (3) Cash payments on accounts payable were $17,500. (4) There was $28,000 cash collected from accounts receivable. (5) Hardy also paid $4,800 cash for operating expenses. Assume that Hardy started the accounting period with $22,000 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.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.