Milo Clothing experienced the following events during 2018, its first year of op
ID: 2394730 • Letter: M
Question
Milo Clothing experienced the following events during 2018, its first year of operation:
Required
Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.)
Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Required Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.) 2.5 points Answer is complete but not entirely correct. MILO CLOTHING Effect of Events on the Financial Statements Assets Stockholders' Equity Net Income Statement of Cash Flows Event Common RevenueExpenses Inventory- Retained Earnings Cash 17,500 + (6,700) 17,500+ 017,500 FA 0(6,700) OA 68346,834 OA 2. 6,8346,834 4,020) 3b. 4 Total (4,020) ,020(4,020) (850) 16,784 (850) 1,964 (850)?OAO 850 4,870 (850), 2,680 17.500 + 6,834 1,964 16,784 NC Prev 1of4H Next > GrawExplanation / Answer
MILO CLOTHING Effect of Events on the financial statements Event Assets Stockholder's Equity Cash + Inventory = Common stock + Retained Earnings Revenue Expenses = Net Income Statement of cash flows 1 17500 + 0 = 17500 + 0 0 - 0 = 0 17500 FA 2 (6700) + 6700 = 0 + 0 0 - 0 = 0 (6700) OA 3a 6834 + 0 = 0 + 6834 6834 - 0 = 6834 6834 OA 3b 0 + (4020) = 0 + (4020) 0 - 4020 = (4020) 0 NA 4 (850) + 0 = 0 + (850) 0 - 850 = (850) (850) OA Total 16784 + 2680 = 17500 + 1964 6834 - 4870 = 1964 16784 NC