Exercise 4-17A (Algo) Comprehensive exercise with sales discounts LO 4-2, 4-3, 4-4, 4-6, 4-7, 4-8 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 $83,000 of merchandise inventory. 2. The goods that were purchased in Event 1 were delivered FOB destination. Transportation costs of $1,660 were paid in cash by the responsible party. 3a. Sold merchandise for $91,500 under terms 1/10, n/30. 3b. Recognized $48,400 of cost of goods sold. 4a. Junker's Stash customers returned merchandise that was sold for $2,360. 4b. The merchandise returned in Event 4a had cost Junker's Stash $1,380. 5. The merchandise in Event 3a was sold to customers FOB destination. Transportation costs of $1,780 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 $7,175 for selling and administrative expenses. 8. Sold the land for $9,750 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 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 C Required D Record the above transactions in a horizontal financial statements model. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corre your answers to the nearest whole dollar amount.) JUNKER'S STASH Financial Statements Model Balance Sheet Income Statement Expensel Loss = Net Income Revenue/ Gain Assets Statement of Cash Flow Cash + Accounts Receivable + Inventory Land + Event No. Beg. bal. 1. Stockholders' Equity Common + Retained Stock Earnings 83,000 + 39,900 + 16,300 + 13,600 = 93,000 + + + + + 2. + + - 3a. + + + + - 3b + + + + 4a. + + - = 4b + + + 5. + + + - 6a. + + + + 6b. + + + + - = 7. 8. + + LI + + + End. bal. 93,000 + 0 + 16,300 + 13,600 = 83,000 + 39,900 0 0= 0 0 Required A Required B > During Year 2, Junker's Stash experienced the following business events: 1. Paid cash to purchase $83,000 of merchandise inventory. 2. The goods that were purchased in Event 1 were delivered FOB destination. Transportation costs of $1,660 were paid in cash by the responsible party. 3a. Sold merchandise for $91,500 under terms 1/10, n/30. 3b. Recognized $48,400 of cost of goods sold. 4a. Junker's Stash customers returned merchandise that was sold for $2,360. 4b. The merchandise returned in Event 4a had cost Junker's Stash $1,380. 5. The merchandise in Event 3a was sold to customers FOB destination. Transportation costs of $1,780 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 $7,175 for selling and administrative expenses. 8. Sold the land for $9,750 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 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 C Required D Determine the amount of net sales. (Round your intermediate calculations and final answer to 1 decimal place.) Net sales