Junker's Stash started the Year 2 accounting period with the balances given the following horizontal financial statements model. During Year 2, Junker's Stash experienced the following business events: 1. Paid cash to purchase $70,000 of merchandise inventory. 2. The goods that were purchased in Event 1 were delivered POB destination. Transportation costs of $1,400 were paid in cash by the responsible party. 3a. Sold merchandise for $72,000 under terms 1/10, n/30. 36. Recognized $41,900 of cost of goods sold. 4a. Junker's Stash customers returned merchandise that was sold for $2,100. 4b. The merchandise returned in Event 4a had cost Junker's Stash $1,250. 5. The merchandise in Event 3a was sold to customers FOB destination Transportation costs of $1,650 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 $6,850 for selling and administrative expenses. 8. Sold the land for $9,100 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. JUNKER'S STASH Financial Statements Model Balance Sheet Assets Revenue/ Gain Income Statement Expense/ = Net Ince Loss ent Cash Accounts Receivable Inventory Land Stockholders' Equity Common Retained Stock Earnings 70,000+ 36,000 0 bal. 80,000 + 15,000 11,000 = 1 + + + 2. + + + + . 3b 4a. 4b 5. . 6b 7 + 8. bal Determine the amount of net sales. Net sales JUNKER'S STASH Income Statement For the Year Ended December 31, Year 2 % % % Operating expenses % % Total operating expenses % % Non-operating items % % The return-on-sales ratio for Junker's Stash during the prior year was 12 percent. Based on the common size data in t income statement, did the expenses for Junker's Stash increase or decrease in Year 2? Assume sales are the same for years. in the evenemen linkare Stash Innransa nr decrease in Year 22