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The following selected transactions apply to Tiffany Jewelers Company for November and December Year 1....

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Accounting

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The following selected transactions apply to Tiffany Jewelers Company for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month. 1. Cash sales for November Year 1 were $55,000, plus sales tax of 8 percent. 2. Tiffany Jewelers Company paid the November sales tax to the state agency on December 10 , Year 1. 3. Cash sales for December Year 1 were $110,000, plus sales tax of 8 percent. Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating 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

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