Marcus Xavier noticed that many small rural towns did not have retail sporting goods outlets To address this need, Marcus created Xavier Sporting Goods. The business experienced the following events during its first year of operation
Acquired $ cash from the issue of common stock
On February Year Xavier Sporting Goods purchased merchandise inventory for $ on account from True Sports Incorporated with terms n
On February Year Xavier Sporting Goods paid True Sports Incorporated in cash to settle the payable
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 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.
