\begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ POWELL COMPANY } \\ \hline \multicolumn{2}{|c|}{ Income Statement } \\ \hline For the Year Ended December 31, Year 2 \\ \hline & \\ \hline & \\ \hline & \\ \hline Operating expenses & \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ BOWELL COMPANY } \\ \hline \multicolumn{2}{|c|}{ As of December 31, Year 2 } & \\ \hline Assets & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total assets & & \\ \hline Liabilities & & \\ \hline Stockholders' Equity & & \\ \hline & & \\ \hline & & \\ \hline Total stockholders' equity & & \\ \hline Total liabilities and stockholders' equity & & \\ \hline \end{tabular} Exercise 4-16A (Algo) Effect of sales returns and allowances and freight costs on the journal, ledger, and financial statements: Perpetual system LO 4-2, 4-4, 4-6, 4-7 [The following information applies to the questions displayed below.] Powell Company began the Year 2 accounting period with $19,600 cash, $60,300 inventory, $49,100 common stock, and $30,800 retained earnings. During Year 2, Powell experienced the following events: 1. Sold merchandise that cost $37,600 for $75,900 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $365 cash. 3. Received returned goods from Prentise. The goods cost Powell $1,920 and were sold to Prentise for $3,940. 4. Granted Prentise a $1,070 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $52,100 cash from accounts receivable. Exercise 4-16A (Algo) Part c Required c. Prepare a multistep income statement, a balance sheet, and a statement of cash flows. \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ POWELL COMPANY } \\ \hline \multicolumn{2}{|c|}{ Statement of Cash Flows } & \\ \hline Cash flows from operating activities: & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from operating activities & & \\ \hline Cash flows from investing activities & & \\ \hline Cash flows from financing activities & & \\ \hline Net change in cash & & \\ \hline & & \\ \hline Ending cash balance & & \\ \hline \end{tabular}