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 1. Acquired $25,000 cash from the issue of common stock. 2. Purchased inventory for $20,000 cash. 3. Sold inventory costing $17,400 for $32,500 cash. Required a. Record the events in general journal format. b. Post the entries to T-accounts c. Determine the amount of gross margin. d. What is the amount of net cash flow from operating activities for Year 1? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Prov 1 of 2 Next > Journal entry worksheet Record entry for issuance of common stock. Note: Enter debits before credits Event General Journal Debit Credit 01 Record entry Clear entry View general journal Journal entry worksheet Record sale of inventory for cash. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record entry for cost of goods sold. Note: Enter debits before credits. Event General Journal Debit Credit 3b S Record entry Clear entry View general Journal Required A Required B Required Required D Post the entries to T-accounts. Cash Common Stock Beg Bal Beg, Bal End. Bal. End. Bal. Merchandise Inventory Sales Revenue Beg. Bal Beg Bal. End. Bal End. Bal. Cost of Goods Sold Beg. Bal. End. Bal. Determine the amount of gross margin. DAN WATSON MERCHANDISING Income Statement For the Year Ended December 31, Year 1 Complete this question by entering your answers in the tabs below. Required A Required B Required Required D 27:10 What is the amount of net cash flow from operating activities for Year 1? (Indicate cash outflows with minus sign.) Not cash flow from operating activities