Pam's Creations had the following sales and purchase transactions during Year 2. Beginning Inventory consisted of 60 items at $350 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records. Description 50 items $270 Date Mar 5 Transaction Purchased Apr 10 Sold 30 items $450 June 15 Sold 60 items $450 Sep. 16 Purchased 70 items $100 Nov. 28 Sold 45 items 5400 Required a. Record the inventory transactions in a financial statements model. b. Calculate the gross margin Pam's Creations would report on the Year 2 income statement c. Determine the ending inventory balance Pam's Creations would report on the December 31, Year 2. balance sheet Complete this question by entering your answers in the tabs below. Required A Required D Required C Record the inventory transactions in a financial statements model. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financi activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require Input) Record the inventory transactions in a financial statements model. (In the Cash Flow column, use the initials OA to designate operating activity, IA for invi activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require Input.) PAM'S CREATIONS Horizontal Statements Model Income Statement Statement of Cash Flows Expenses Net Income 21,000 Balance Sheet Event Mo Retained Cash + Inventory Revenue Eamings 21,000 21.000 1/1 3/5 4/10 4/10 6/19 6/19 + 0/16 11/28 11/28 Bal 0 0 Pam's Creations had the following sales and purchase transactions during Year 2. Beginning Inventory consisted of 60 Items at $350 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records. Description 50 items @$370 30 items $450 Date Transaction Mar 5 Purchased Apr. 10 June 19 Sold Sold Sep. 16 Purchased) Nov. 28 Sold 60 items @$450 70 items @$390 45 items @$480 Required a. Record the inventory transactions in a financial statements model. b. Calculate the gross margin Pam's Creations would report on the Year 2 income statement. c. Determine the ending inventory balance Pam's Creations would report on the December 31, Year 2, balance sheet. Balance Sheet PAM'S CREATIONS Horizontal Statements Model Event No. Retained Cashi + Inventory Revenue Earnings 21,000 21,000 + 1/1 3/5 4/10 4/10 + 6/19 6/19 9/16 11/28 Bal 11/28 Income Statement Statement of Cash Flows Expenses Net Income 21,000 0+ 0= 0 0 0 = 0