Answer:
a. Journals
Cash $30,000 (debit)
Common Stock $30,000 (credit)
Cash in Exchange of Common Stock
Inventory $18,000 (debit)
Cash $18,000 (credit)
Cash Purchase of Inventory
Cash $32,000(debit)
Cost of Sales $15,000 (debit)
Sales Revenue $32,000 (credit)
Inventory $15,000 (credit)
Sale of Inventory on cash basis
b. T - Accounts
Cash Account
Debit :
Common Stock       $30,000
Sales Revenue        $32,000
Credit :
Inventory            $18,000
Balance             $44,000
Common Stock
Debit :
Balance             $30,000
Credit :
Cash               $30,000
Balance
Inventory
Debit :
Cash               $18,000
Credit :
Cost of Sales        $15,000
Balance             $3,000
Sales
Debit :
Balance           $32,000
Credit :
Cash             $32,000
Cost of Sales
Debit :
Inventory          $15,000
Credit :
Balance           $15,000
c. Gross Margin = $17,000
d. net cash flow from operating activities for Year 1 = $14,000
Explanation:
Gross Margin = Sales - Cost of Sales
            = $32,000 - $15,000
            = $17,000
Net Cashflow from Operating Activities
Cash Paid to Suppliers                     ($18,000)
Calculation :
Cost of Sales                 $15,000
Add Increase in Inventory       $3,000
Cash Paid to Suppliers         $18,000
Cash Receipts from Customers              $32,000
Net Cash From Operating Activities           $14,000
