statements: Perpetual system LO 4-1 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. a. Acquired $26,000 cash from the issue of common stock. b. Purchased inventory for $20,800 cash. c. Sold inventory costing $15,900 for $29,000 cash. Required: 1. Record the events in a horizontal financial statements model. 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. Record the events in a horizontal financial statements model. Note: In the Cash Flow column, use OA to designate operating activity, IA for investment aci account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cas input needed. Wichipen