Please answer in proper format with all working clearly

Please use commas and dollar sign in figures

DAN WATSON MERCHANDISING Income Statement For the Year Ended December 31, Year 1 Operating expensesDAN WATSON MERCHANDISING Effect of Events on Financial Statements Assets Stockholders' Equity Net Statement of Cash Event Retained Revenue Income Flows Inventory Common Expenses Cash Stock Earnings 1 38 3b TotalDan 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. 1. Acquired $26,500 cash from the Issue of common stock. 2. Purchased inventory for $21,200 cash. 3. Sold Inventory costing $17,300 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, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. 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 perlod