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 $84,000 of merchandise inventory. 2. The goods that were purchased in Event 1 were delivered FOB destination. Freight costs of $1,680 were paid in cash by the responsible party. 3a. Sold merchandise for $93,000 under terms 1/10, n/30. 3b. Recognized $48,900 of cost of goods sold. 4a. Junker's Stash customers returned merchandise that was sold for $2,380. 4b. The merchandise returned in Event 4a had cost Junker's Stash $1,390. 5. The merchandise in Event 3a was sold to customers FOB destination. Freight costs of $1,790 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 $7,200 for selling and administrative expenses. 8. Sold the land for $9,800 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Record the transactions in a horizontal financial statements model. (In the Statement of Cash Flows column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for Net change in cash; leave the cell blank if the Statement of Cash Flows is not affected. Enter any decreases to account balances and cash outflows with a minus sign. Round your answers to the nearest whole dollar.) JUNKER'S STASH Financial Statements Model Balance Sheet Income Statement Assets Event No. Cash + Accounts Receivable + Inventory + Land Common Stock + Beg. bal. 1. 94,000+ (84,000) + + 16,400 + 13,800 84,000 + Stockholders' Equity Retained Earnings 40,200 Revenue/ Gain Expense Loss Net Income Statement of Cash Flows + 84,000+ + (84,000) 2. - . + 93,000+ 3b. + + + + = + (48,900) + + 93,000 (48,900) 93,000 = 93,000 4a. (2,380) + + + + (2,380) 4b. + 1,390 + - 1,390 48,900- 2,380 (1,390)= (48,900) (2,380) (2,380) CA 1,390 5. 1,790 + + + 1,790 1,790- = 1,790 1,790 OA 6a. + + + - 6b. 7. + + + + End. bal. 8. 9,410 + 93,000+ + 52,890 + 13,800 84,000+ 85,100 94,790 49,890- 44,900 (84,590) < Required A Required B > Show less