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 $30,000 cash from the issue of common stock.

Purchased inventory for $18,000 cash.

Sold inventory costing $15,000 for $32,000 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?