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 $33,500 cash from the issue of common stock. 2. Purchased inventory for $26,800 cash. 3. Sold inventory costing $17,600 for $32,000 cash. Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. (Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.) Show less Assets DAN WATSON MERCHANDISING Effect of Events on Financial Statement Stockholders' Equity Common Retained Revenue Expenses Stock Earnings Event Net Income Statement of Cash Flows Cash + + Inventory 1 + + 2. + + 3a + + 3b. + Total + Prepare an income statement for Year 1 (use the multistep format). DAN WATSON MERCHANDISING Income Statement For the Year Ended December 31, Year 1 What is the amount of total assets at the end of the period? Total assets