Junker$$s Stash started the Year $2$ accounting period with the balances given in the financial statements model shown as follows. During Year $2,$ Junker$$s Stash experienced these business events:

$1.$ Paid cash to purchase $$82,000$ of merchandise inventory.

$2.$ The goods that were purchased in Event $1$ were delivered FOB destination. Freight costs of $$1,640$ were paid in cash by the responsible party.

$3$a$.$ Sold merchandise for $$90,000$ under terms $1/10,$ n$/30.$

$3$b$.$ Recognized $$47,900$ of cost of goods sold.

$4$a$.$ Junker$$s Stash customers returned merchandise that was sold for $$2,340.$

$4$b$.$ The merchandise returned in Event $4$a had cost Junker$$s Stash $$1,370.$

$5.$ The merchandise in Event $3$a was sold to customers FOB destination. Freight costs of $$1,770$ were paid in cash by the responsible party.

$6$a$.$ The customers paid for the merchandise sold in Event $3$a within the discount period. Recognized the sales discount.

$6$b$.$ Collected the balance in the accounts receivable account.

$7.$ Paid cash of $$7,150$ for selling and administrative expenses.

$8.$ Sold the land for $$9,700$ cash.

Required

a$.$ Record the 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.