Prepare an income statement for Year 1 (use the multistep forr Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More 3 record the amounts of the events into the model. Aso, in the Statement of Cash Flows column, dassify the cash flows as operating activities ( QA ), activities (IA), or financing actlvities (FA). Notei Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed What is the amount of total assets at the end of the per Dan Watson started a small merchandising business in Year 1. The business experienced the following events during its first yoar of operation. Assume that Watson uses the perpetual inventory system. 1. Acquired $34,500 cash from the issue of common stock. 2. Purchased inventory for $27,600 cash. 3. Sold inventory costing $18,600 for $28,500 cash. Required: a. Use. a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, recard the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). b. Prepare an income statement for Year 1 (use the multistep format). c. What is the amount of total assets at the end of the period