Ultra Day Spa provided $86,800 of services during Year 1. All customers paid for the services with credit cards. Ultra submitted the credit card receipts to the credit card company immediately. The credit card company paid Ultra cash in the amount of face value less a 4 percent service charge. Required a. Show the credit card sales (Event 1) and the subsequent collection of accounts receivable (Event 2) in a horizontal statements model. Required:
a. What is the amount of total assets at the end of the accounting period?
b. What is the amount of revenue reported on the income statement?
c. What is the amount of cash flow from operating activities reported on the statement of cash flows?

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