Help I cant figure out why the red is wrong Exercise 35 Reco

Help! I can\'t figure out why the red is wrong???

Exercise 3-5 Recording inventory transactions in a financial statements model LO 3-1 Hilo Clothing experienced the following events during 2014, its first year of operation 1. Acquired $30,000 cash from the issue of common stock. 2. Purchased inventory for $24,000 cash 3. Sold inventory costing $13,000 for $22,000 cash 4. Paid $1,600 for advertising expense Required Record the events in a statements model like the one shown below. 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.) HILO CLOTHING Effect of Events on the Financial Statements Assets Stockholders\' Equity Net Income Statement of Event Revenue Expenses Retained Earnings Common+ Cash Flows 30,000 FA > 22,000 OAO Cash + Inventory Stock | 30,000 + 30,000 2.(24,000) (24,000) > OA > 24,000 13,000) 0 0 0 22,000+ 9,000 3b 13,000 9,000 | (1,600) 7,400 0 22,000- (1,600) + 26,400 + (1,600) (1,600) 26,400 OA 1,600 14,600 | 7,400 Total Red text 11,000 - 30,000 + 22,000- NA no response was expected in a cell or a formula-based calculation is incorrect; no points deducted

Solution

Effect of events on the financial statements :

HILO CLOTHING
Effect of events on the financial statements
	Assets		Stockholder\'s equity
Events	Cash	+	Inventory	=	Common stock	+	retained earnings	Revenue	-	Expenses	=	Net income	Statement of cash flows
1.	30000	+	0	=	30000	+	0	0	-	0	=	0	30000	FA
2.	(24000)	+	24000	=	0	+	0	0	-	0	=	0	(24000)	OA
3a	22000	+	0	=	0	+	22000	22000	-	0	=	22000	22000	OA
3b	0	+	(13000)	=	0	+	(13000)	0	-	13000	=	(13000)	0	NA
4.	(1600)	+	0	=	0	+	(1600)	0	-	1600	=	(1600)	(1600)	OA
Total	26400	+	11000	=	30000	+	7400	22000	-	14600	=	7400	26400