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. 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 2018 (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
Prepare an income statement for 2018 (use the multistep format).
DAN WATSON WERCHANDISING
Income Statement
For the Year Ended December 31, 2018
Operating expenses