Dan Watson started a small merchandising business in Year 1. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system. a. Acquired $30,000 cash from the issue of common stock. b. Purchased inventory for $24,000 cash. c. Sold inventory costing $18,800 for $31,000 cash. Required: a. Record the events in a horizontal financial statements model. 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?