Brief Exercise 3-5 (Algo) Effect of inventory shrinkage on the horizontal statements model LO 3-5...
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Brief Exercise 3-5 (Algo) Effect of inventory shrinkage on the horizontal statements model LO 3-5 Bridgeport Electronics experlenced the following events during Year 1, Its first year of operation: 1. Started the business when It acquired $118,000 cash from the Issue of common stock. 2. Pald $103,000 cash to purchase Inventory. 3. Sold merchandise Inventory costing $44,000 for $83,000 cash. Record this transaction as two separate events (3a and 3b ). 4. Physically counted Inventory showing $50,200 Inventory was on hand at the end of the accounting perlod. Requlred: Use a horizontal financlal 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, classlfy the cash flows as operating activitles (OA), Investing actlvitles (IA), or financing activitles (FA). The first transaction is shown as an example. 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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Brief Exercise 3-5 (Algo) Effect of inventory shrinkage on the horizontal statements model LO 3-5 Bridgeport Electronics experlenced the following events during Year 1, Its first year of operation: 1. Started the business when It acquired $118,000 cash from the Issue of common stock. 2. Pald $103,000 cash to purchase Inventory. 3. Sold merchandise Inventory costing $44,000 for $83,000 cash. Record this transaction as two separate events (3a and 3b ). 4. Physically counted Inventory showing $50,200 Inventory was on hand at the end of the accounting perlod. Requlred: Use a horizontal financlal 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, classlfy the cash flows as operating activitles (OA), Investing actlvitles (IA), or financing activitles (FA). The first transaction is shown as an example. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no Input is needed 