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During Year 2, Junker's Stash experienced the following business events 1. Paid cash to purchase $89,000 of merchandise inventory. 2. The goods that were purchased in Event 1 were delivered FOB destination. Transportation costs of $1,780 were paid in cash by the responsible party. 3a. Sold merchandise for $100,500 under terms 1/10, n/30. 3b. Recognized $51,400 of cost of goods sold. 4a. Junker's Stash customers returned merchandise that was sold for $2.480. 4b. The merchandise returned in Event 4a had cost Junker's Stash $1,440 5. The merchandise in Event 3a was sold to customers FOB destination. Transportation costs of $1,840 were paid in cash by the responsible party. 6a. The customers paid for the merchandise sold in Event 3a within the discount period. Recognized the sales discount. 6b. Collected the balance in the accounts receivable account. 7. Paid cash of $7,325 for selling and administrative expenses. 8. Sold the land for $10,050 cash. Required: a. Record the above transactions in a horizontal financial statements model. b. Determine the amount of net sales. c. Prepare a multistep income statement. Include common size percentages on the income statement. d. The return-on-sales ratio for Junker's Stash during the prior year was 12 percent. Based on the common size data in the income

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{19}{|c|}{ WUNHEHESSTASH } \\ \hline \multicolumn{19}{|c|}{ Finaricial Statemonts Modef } \\ \hline \multirow{3}{*}{EventNamber} & \multicolumn{11}{|c|}{ Bolance Sheot. } & \multicolumn{5}{|c|}{ thcorae stalement } & \multirow{3}{*}{\multicolumn{2}{|c|}{statementofCastHow}} \\ \hline & \multicolumn{8}{|c|}{ Assets: } & \multicolumn{3}{|c|}{ Stocitiolders'Equity } & \multirow{2}{*}{\multicolumn{2}{|c|}{RevenoefGain}} & \multirow[b]{2}{*}{ExpensedLoss} & \multirow{2}{*}{\multicolumn{2}{|c|}{ - Net income }} & & \\ \hline & Cash & + & AccountsBecrivabte & & inventary & 4 & Land & - & Commonstock & & RetainedEarninges & & & & & & & \\ \hline Beginning balance & 99,000 & + & & & 16.900 & & 14800 & = & 89.000 & . & 41,700 & & - & & = & & & \\ \hline 1 & (89,000) & & & + & 89.000 & +7 & & = & & + & & & - & & = & & (69,000) & OA \\ \hline 2 & & . & & + & & - & & = & & . & & & - & & = & & & \\ \hline 3a & & + & 100,500 & - & & + & & = & & . & & 100500 & - & & = & 100,500 & & \\ \hline 3b & & - & & - & (51,400) & + & & F & & - & & & - & 51,400 & = & (51,400) & & \\ \hline 42 & & + & 2.480) & + & &. & & = & & - & & 0.4503 & - & & a & (2.400) & & \\ \hline so & & . & & - & 1,440 & +4 & & = & & - & & & - & (1.440) & = & 1.440 & & \\ \hline 5 & (1840) & . & & + & & + & & = & & - & & & = & 1,840 & & (1,840) & (1,640) & OA \\ \hline 69 & & + & 1,050 & + & & -7 & & -8 & & & 1,050 & 1,050 & - & & = & 1,050 & & \\ \hline 60 & 96970 & + & 196.970) & + & & - & & = & & . & & & - & & = & & 96970 & \\ \hline 7. & 0.325 & + & & . & & . & & = & & - & (7325)2 & & - & 7325 & = & (7,325) & 7325 & OA \\ \hline & 10.060 & & & + & & -1 & (14,600) & = & &. & (4,750) & & - & 4750 & = & (4750) & 10.050 & 4 \\ \hline Endrve bullance & 107,055 & & 2.100 & + & 55940 & . & 0 & a & 89.000 & . & 30.675 & 99,070 & - & 638875 & & 35.195 & 1.055 & NC \\ \hline \end{tabular} Prepare a multistep income statement. Indude common size percentages on the income state Neto, Reund vnur ancwere tn 1 derimal nlare Complete this question by entering your answers in the tabs below. The return-on-sales ratio for Junker's Stash during the prior year was 12 percent. Based on the common size data in the income statement, did the expenses for Junker's Stash increase or decrease in Year 27 . Assume sales are the same for both years. Did the expenses for Junker's Stash increase or decrease in Year 2? Decrease During Year 2 , Junker's Stash experienced the following business events 1. Paid cash to purchase $89,000 of merchandise inventory. 2. The goods that wete purchased in Event 1 were delivered FOB destinotion Transportation costs of \$1,780 were paid in cash by t responsible party 3a. Sold merchandise for $100,500 under terms 1/10,n/30 3b. Recognized $51,400 of cost of goods sold. 4a Junker's Stash customers returned merchandise that was sold for $2,480. 4b. The merchandise retumed in Event 4c had cost Junker's Stosh $1,440. 5. The merchandise in Event 3 a was sold to customers FOB destination, Transpontion costs of $1,840 were paid in cash by the responsible party 6a. The customers poid for the merchandise sold in Event 3a within the discount period. Recognized the sales discount 6b. Collected the balance in the accounts receivoble account 7. Poid cash of $7,325 for selling and odministrotive expenses. 8. Sold the land for $10,050 cash. Required: a. Record the above transactions in o horizontal financial statements model. b. Determine the amount of net sales c. Prepare a muitistep income stotement Include common size percentoges on the income statement d. The return-on-sales ratio for Junker's Stash during the prior year wos 12 percent Based on the common sze data in the income Complete this question by entering your answers in the tabs below. Determine the amount of net sales. Note: Round your intermediate calculations and final answer to 1 decimal place

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