can you explain please!!
Junker's Stash started the Year 2 accounting period with the balances given in the following horizontal financial statements model During Year 2, Junker's Stash experienced the following business events. 1. Paid cash to purchase $78,000 of merchandise inventory. 2. The goods that were purchased in Event 1 were delivered FOB destination. Transportation costs of $1,560 were paid in cash by the responsible party. 3a. Sold merchandise for $84,000 under terms 1/10,n/30. 3b. Recognized $45,900 of cost of goods sold 4a. Junker's Stash customers returned merchandise that was sold for $2,260 4b. The merchandise returned in Event 4 a had cost Junker's Stash $1,330 5. The merchandise in Event 3a was sold to customers FOB destination. Transportation costs of $1730 were paid in cash by the responsible party. 6a. The customers paid for the merchandise sold in Event 3 a within the discount period. Recognized the sales discount. 6b. Collected the balance in the accounts receivable account. 7. Paid cash of $7,050 for selling and administrative expenses 8. Sold the land for $9,500 cash. Required: 0. 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 clata 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. Junker's Stash started the Year 2 accounting period with the balances given in the following horizontal financial statements model. During Year 2, Junker's Stash experienced the following business events. 1. Paid cash to purchase $78,000 of merchandise inventory 2. The goods that were purchased in Event 1 were delivered FOB destination. Transportation costs of $1,560 were paid in cash by the responsible party. 3a. Sold merchandise for $84,000 under terms 1/10,n/30 3b. Recognized $45,900 of cost of goods sold 4a. Junker's Stash customers retumed merchandise that was sold for $2,260. 4b. The merchandise retumed in Event 4a had cost Junker'5 5 tash 51,330 5. The merchandise in Event 3a was sold to customers FOB destination. Transportation costs of $1730 were paid in cash by the responsible party. 6a. The customers paid for the merchandise sold in Event 3 a within the discount period. Recognized the sales discount. 66. Collected the balance in the accounts receivable account 7. Paid cash of $7,050 for selling and administrative expenses 8. Soid the land for $9.500 cash. Required: 0. Record the above transactions in a horizontal financial statements model. b. Determine the amount of inet sales c. Prepare a muitstep income statement. Include common size percentages on the income statement d. The retum-on sales ratio for Junke's Stash during the ptior year was 12 percent fosed on the common size data in the income statement, did the expenses for Junker's Stash increhse or decrease in Year 2? Assume sales are the same for both years JUNKER'S STASH Financial Statements Model
