Milo Clothing experienced the following events during Year 1, its first year of operation: Acquired $19,500 cash from the issue of common stock. Purchased inventory for $6,300 cash. Sold inventory costing $3,780 for $6,426 cash. Paid $600 for advertising expense. 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, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Not every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.)
Milo Clothing experienced the following events during Year 1, its first year of operation:
- Acquired $19,500 cash from the issue of common stock.
- Purchased inventory for $6,300 cash.
- Sold inventory costing $3,780 for $6,426 cash.
- Paid $600 for advertising expense.
Record the events in a horizontal statement model. In the
The cash inflow and outflow is reported under three activities viz Operating activity which relates with the main business or operations of the company. Investing activities relates with the purchase and sale of long term assets, investments. Financing activities relates with the equity, debt and dividend.
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