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. Acquired $35,000 cash from the issue of common stock. Purchased inventory for $28,000 cash. Sold inventory costing $16,000 for $31,500 cash. Required: Record the events in a horizontal financial statements model. Prepare an income statement for Year 1 (use the multistep format). What is the amount of total assets at the end of the period