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$(1)$ 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.

Complete this question by entering your answers in the tabs below.

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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