Pams 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.

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. Date Mar. 5 Apr. 10 June 19 Sep. 16 Nov. 28 Transaction Purchased Sold Sold Purchased Sold Description 50 items @ $370 30 items @ $450 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. Required A Required B 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 financing 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.) Balance Sheet PAM'S CREATIONS Horizontal Statements Model Income Statement Retained Revenue Expenses Earnings Event No. Statement of Cash Flows Cash Net Income Inventory 21,000 1/1 21,000 21,000 3/5 + = + + 4/10 4/10 6/19 6/19 9/16 + + + = = + 11/28 11/28 + Bal. 0 + 0 0 0 - 0 = 0 0 Required A Required B Required C Calculate the gross margin Pam's Creations would report on the Year 2 income statement. (Amou indicated with a minus sign.) Sales Cost of goods sold Gross margin $ 0 Required A Required B Required C Determine the ending inventory balance Pam's Creations would report on the December 31, Year 2, balance sheet. Ending inventory