cash flows. More specitically, record the amounts of the events into the model. Also, in the Statement of Cash Hows column, classity the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$

b$.$ Prepare an income statement for Year $1($use the multistep format$).$

c$.$ What is the amount of total assets at the end of the period?

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Required C

Use a horizontal financial statements model to show hain each event affects the balance sheet, income statement, and statement of cash flows. More specifi record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$

Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.

$\backslash$table$[[$DAN WATSON MERCHANDISING$],[$Effect of Events on Financial Statements$],[$Event$,$Assets,$\backslash$table$[[=$