Dan Watson started a small merchandising business in 2018. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system. 1. Acquired $27,000 cash from the issue of common stock. 2. Purchased Inventory for $21,600 cash. 3. Sold inventory costing $17,400 for $29,500 cash. Required a. Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for Investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. b. Prepare an income statement for 2018 (use the multistep format). c. What is the amount of total assets at the end of the period? Complete this question by entering your answers in the tabs below. Required A Required B Required Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investme activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Not every cell will require en account balances and cash outflows with a minus sign.) Required A Required B Required C Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investme activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. (Not every cell will require en account balances and cash outflows with a minus sign.) DAN WATSON MERCHANDISING Effect of Events on Financial Statement Stockholders' Equity Common Retained Revenue - Expenses - Stock Earnings Assets Inventory Net Event Cash Income Statement of Cash Flows 1. 3b Total Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an income statement for 2018 (use the multistep format). DAN WATSON MERCHANDISING Income Statement For the Year Ended December 31, 2018 Operating expenses Required A Required B Required What is the amount of total assets at the end of the period? Total assets