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Junker's Stash started the Year 2 accounting period with the balances given in the financial statements model shown below. During Year 2. Junker's Stash experienced

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Junker's Stash started the Year 2 accounting period with the balances given in the financial statements model shown below. 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 FOB destination. Freight costs of $1.400 were paid in cash by the responsible party 30. Sold merchandise for $72,000 under terms 1/10, 1/30. 3b. Recognized $41,900 of cost of goods sold. 40. Junker's Stash customers returned merchandise that was sold for $2300. 46. 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 Freight costs of $1650 were paid in cash by the responsible party 6a. The customers paid for the merchandise sold in Event 3s within the discount period. Recognized the sales discount 6b. Collected the balance in the accounts receivable account 7. Pald 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 financial statements model. The first event is recorded as an example. 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? + JUNKER'S STASH Financial Statements Model Balance sheet Revenue Income Statement Expense Loss Net Income 50 Assets Cash Accounts Receivable Inventory . Land Stockholders' Equity Common Retained Stock Earnings 70,000 36.000 80,000 + + 15.000 + 11,000 = - + - . + + - - + + + . + + + . - 30,000 0 15.000 11000 70.000 36,000 D 0 Required> Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Determine the amount of net sales. Net sales 4 Required A Required B Required Required D Prepare a multistep income statement. Include common size percentages on the income statement. (Round percentag answers to 1 decimal place.) 4 points JUNKER'S STASH Income Statement For the Year Ended December 31, Year 2 % % % 0 0.0 Operating expenses % % Total operating expenses 0.0 % olo 0.0 de Non-operating items % % $ 0 0.0

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