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. required a. identify the events described in the preceding paragraph and show them in a horizontal statements model. the first event is recorded as an example. b. what is the balance of accounts receivable at the end of year 1? c. what is the balance of accounts payable at the end of year 1? d. what are the amounts of gross margin and net income for year 1? e. determine the amount of net cash flow from operating activities.

answer; (a) searching for information can be done quickly;

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.