Exercise 4-2A Effect of inventory transactions on journals, ledgers, and financial statements: Perpetual system LO 4-1 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 $16,000 for $29,500 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C. Required D Required A Required B Required C Required D Record the events in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Required A Required B Required C Required D Post the entries to T-accounts. Cash Common Stock Beg. Bal. Beg. Bal. End. Bal. End. Bal. Merchandise Inventory Sales Revenue Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. Cost of Goods Sold Beg. Bal. End. Bal. Complete this question by entering your answers in the tabs below. Required A Required B Required c Required D Determine the amount of gross margin. DAN WATSON MERCHANDISING Income Statement For the Year Ended December 31, Year 1 Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D What is the amount of net cash flow from operating activities for Year 1? (Indicate cash outflows with minus sign.) Net cash flow from operating activities