On January $1,2024,$ Diamondbacks Inc started a business

The company had the following accounting events during the first year of operation.

$1.$ Started the business by issuing common stock for $$350,000$ cash.

$2.$ Paid $$276,500$ cash to purchase inventory.

$3$ Sold merchandise that cost $$140,000$ for $$315,000$ on account.

Hint : Think $3$a and $3$b for event $3$

$4$ Paid $$70,000$ cash for operating expenses.

$5$ Wrote off $$21,000$ of inventory

$6$ Collected $$280,000$ cash from accounts receivable.

REQUIRED

$1.$ Record the preceding transactions in the horizontal statements model.

$2.$ Prepare an income statement, a balance sheet, and a statement of cash flows.

$3.$ Since Diamondbacks Inc sold inventory for $315,000$$ will the company be able to recover more than $30\%$ of the

$350,000$$ invested in the stock.

Do you agree with this statement? Why or why not? Please answer either yes or no$.$

Hint : Think Net Income generated by business activity in the period compared to the original investment