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Exercise 4-17A (Algo) Comprehensive exercise with sales discounts LO 4-2, 4-3, 4-4, 4-6, 4-7, 4-8 Junkers Stash started the Year 2 accounting period with the balances given in the following horizontal financial statements model During Your 2. Junker's Stash experienced the following business events: 1. Paid cash to purchase $72,000 of merchandise inventory 2. The goods that were purchased in Event 1 were delivered FOB destination. Transportation costs of $1.440 were paid in cash by the responsible party 31. Sold merchandise for $75,000 under terms 1/10, 1/30, 3b. Recognized $42,900 of cost of goods sold. 4. Junker's Stash customers returned merchandise that was sold for $2.140. 45. The merchandise returned in Event 4a had cost Junker's Stash $1.270. 5. The merchandise in Event 3e was sold to customers FOB destination. Transportation costs of St670 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 6. Collected the balance in the accounts receivable account 7. Paid cash of $6.900 for selling and administrative expenses. 8. Sold the land for $9.200 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 statement, did the expenses for Junker's Stash increase or decrease in Year 27 Assume sales are the same for both years. Required A Required Required Required Record the above transactions in a horten al financial statements model in the Cash Flow column, use OA to designate operating activity, IA for investment activity cash Enter any decreases to account balances and cash outhows with a minus sign. Not all cells in the statement of Cash Flows column may require input-eve Round you to the nearest whole dotlar amount.) JUNKERS STASH Financial Statement Model Balance Sheet Revenue Gain Income Statement Expensal Los Net Income Stament of Cash Fle Assets Accounts Naceva Inventory 15200 Land Stockholders' Equity Common Retained Stock Earning 72.000 36.600 Begal 2000 11400 (2.000) 2 5 16 - 7 00- - 200 1630 - Endal 0- 15200 11.400 72.000 36500 0 Complete this question by entering your answers in the tabs below Required A Required B Required C Required D Determine the amount of net sales. (Round your intermediate calculations a Net sales year was 12 percent. Based on the common size data in the ement, did the expenses for Junker's Stash increase or decrease in Year 2? Assume sales are the same for both years Complete this question by entering your answers in the tabs below. Required A Required B Required Required 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 statement, did the expenses for Junker's Stash increase or decrease in Year 2? Assume sales are the same for both years. Did the expenses for Junker's Stash increase or decrease in Year 27

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