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 $93,000 of merchandise inventory. 2. The goods that were purchased in Event 1 were delivered FOB destination. Transportation costs of $1,860 were paid in cash by the responsible party. 3a. Sold merchandise for $106,500 under terms 1/10,n/30. 3b. Recognized $53,400 of cost of goods sold. 4a. Junker's Stash customers returned merchandise that was sold for $2,560. 4b. The merchandise returned in Event 4a had cost Junker's Stash $1,480. 5. The merchandise in Event 3a was sold to customers FOB destination. Transportation costs of $1,880 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. Pald cash of $7.425 for selling and administrative expenses. 8. Sold the land for $10,250 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. 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 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 cash. 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 ce Round your answers to the nearest whole dollar amount.) JUNKER'S STASH Financial Statements Model Balance Sheet Income Statement Expenser Loss - Net Income Statement of Cash Flow Revenue Gain Assets Event No. Bogbal 1 2 Cash Accounts Receivable 103,000 - Inventory 17 300 Land 15,600 Stockholders' Equity Common Retained Stock Earnings 93,000 42,900 + Usil, eller 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 ce Round your answers to the nearest whole dollar amount.) JUNKER'S STASH Financial Statements Model Balance Sheet Assets Revenue Gain Income Statement Expensad Loss - Net Income Statement of Cash Flow Cash Accounts Receivable Land Event No. Beg bal 1. 2. Inventory 17,300 Stockholders' Equity Common Retained Stock Earnings 93,000+ 42.900 103,000 - 15.600 + . + 3b + 4a = 4b 5 Ga 6b 7 + + 8 + End. bal. 103,000 0 17,300 15,600 93,000 42.900 0- Required) 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 Required A Required B Required C Required D Prepare a multistep income statement. Include common size percentages on the income statement. (Round your answers to 1 decimal place.) JUNKER'S STASH Income Statement For the Year Ended December 31, Year 2 % % 0.0 0.0 % Operating expenses % % Total operating expenses 0.0 % 0.0 % 0.01% 0.0 Non-operating items % 0.0 % $ 0.0 (Required B Required D > Required A Required B Required Required 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. Did the expenses for Junker's Stash increase or decrease in Year 2?