Chapter 3 Homework Exercises 2 125 points References Saved Dan Watson started a small merchandising business in Year 1. The business exp operation. Assume that Watson uses the perpetual inventory system. 1. Acquired $30,000 cash from the issue of common stock. 2. Purchased inventory for $18,000 cash. 3. Sold inventory costing $15,000 for $32,000 cash. Required: a. Use a horizontal financial statements model to show how each event affects t cash flows. More specifically, record the amounts of the events into the mode- the cash flows as operating activities (OA), investing activities (IA), or financing 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? Complete this question by entering your answers in the tabs below.