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34 votes
34 votes
During Year 1, Hardy Merchandising Company purchased $40,000 of inventory on account. Hardy sold inventory on account that cost $24,500 for $38,000. Cash payments on accounts payable were $22,000. There was $26,000 cash collected from accounts receivable. Hardy also paid $5,100 cash for operating expenses. Assume that Hardy started the accounting period with $20,000 in both cash and common stock.

User Broper
by
3.0k points

1 Answer

23 votes
23 votes

Answer:

Explanation:

-40,000

+24500

+38000

+22000

+26000

-5,100

total gain =65000

User Ravinder Gangadher
by
3.1k points
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