LO 3-1 Exercise 3-3 Effect of inventory transactions on financial statements: Perpetual system Justin Swords started a small merchandising business in 2014. The business experienced the following events during its first year of operation. Assume that Swords uses the perpetual inventory system. 1. Acquired $70,000 cash from the issue of common stock. 2. Purchased inventory for $60,000 cash. 3. Sold inventory costing $48,000 for $82,000 cash. Required a. Record the events in a statements model like the one shown below. Assets Equity Rev. - Exp. 1 Net Ine. Cash Flow Cash + Inv. Com. Stk. + Ret. Earn. b. Prepare an income statement for 2014 (use the multistep format). c. What is the amount of total assets at the end of the period