Mark Dixon started a small merchandising business in 2012. The business experienced the following events during its first year of operation. Assume that Dixon uses the perpetual inventory system.
1. Acquired $40,000 cash from the issue of common stock.
2. Purchased inventory for $30,000 cash.
3. Sold inventory costing $20,000 for $32,000.
a. Record the events in a statement model
b. Prepare an income statement for 2012 (Use multistep format)
c. What is the amount of total assets at the end of the period