part B

Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an income statement for Year 1 (use the multistep format). DAN WATSON MERCHANDISING Income Statement For the Year Ended December 31, Year 1 Net sales $ 29,500 Operating expenses % 16,100 Gross margin 13,400 CR my work mode! I his Shows What Is Correct or incorrect for the work you have completed so far. It does not indicate completion. Return to questic Dan Watson started a small merchandising business in Year 1. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system. c ontrom the issue of common stock 1. Acquired $32,500 cash from the issue of common stock 2. Purchased inventory for $26,000 cash. 3. Sold inventory costing $16,100 for $29,500 cash. Required a. Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C a. Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. 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. Required A Required B Required C Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, F activity, and NC for net change in cash. (Enter any decreases to account balances with a minus sign. Not all cells in the Statement of Cash Flows require an input - leave cells blank if there is no corresponding input needed.) Event Net Income Statement of Cash Flows DAN WATSON MERCHANDISING Effect of Events on Financial Statement Stockholders' Equity Common Retained Revenue - Expenses - Stock Earnings 32,500 + | |- P - - 16,100 - 0 29,500 - 16,100 Assets - Cash Inventory - 32,500+ = (26,000) 26,000) = 29.500 + + (16,100) - 36,000 9.900 1. | 2. 3a. 3b. Total FA OA | OA 29.500 29,500 (16,100) 13.400