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 $$34,500$ cash from the issue of common stock.

Purchased inventory for $$27,600$ cash.

Sold inventory costing $$15,100$ for $$28,500$ cash.

Required

Record the events in general journal format.

Post the entries to T$-$accounts.

Determine the amount of gross margin.

What is the amount of net cash flow from operating activities for Year $1?$