Dan Watson started a small merchandising business in Year 1. The business expeskenced the following events during ifs first year of opetation. Assume that Watsan uses the perpetual inventory system. 1. Acquired $30,000 cash from the issue of common stock 2. Purchased imventory for $2,4,000 cash. 3. Sold inventory costing $15,300 for $31000 cirsh. Required: o. Use a horizontal financial staternents model to show how each event affects the balance sheet, income statement, and statement of cath flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classily the cash flows as operating activities (ON), imesting octivites (W) or financing octivities (F)A) b. Prepare an incomie staferneat for Your 1 (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. activides (IA), or finsongho octivities (CA) Prepare an income statement for Year 1 (use the multistep format). Complete this question by entering your answers in the tabs below. What is the amount of total assets at the end of the period