owell Company began the Year 3 accounting period with $43,000 cash, $89,000 inventory, $63,000 common stock, and $69,000 etained earnings. During Year 3, Powell experienced the following events: 1. Sold merchandise costing $59,500 for $102,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $1,000 cash. 3. Received returned goods from Prentise. The goods cost Powell $4,300 and were sold to Prentise for $5,400. . Granted Prentise a $3,300 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $83,500 cash from accounts receivable. equired . Record the events in a statements model shown below. . Prepare an income statement, a balance sheet, and a statement of cash flows. Why would Prentise agree to keep the damaged goods? Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required Record the events in a statements model shown below. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, use the ini to designate operating activity, IA for investing activity, and FA for financing activity. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells there is no corresponding input needed.) Assets Event No. Cash Statement of Cash Flows Accounts Receivable + Inventory = Net Income + Bal. 43,000 + 89.000 POWELL COMPANY Financial Statements Model for Year 3 Stockholders' Equity Income Statement Common Retained Revenue Expenses Stock Earnings 63,000 69,000 102,500 102,500 (59,500) 59,500 = (1,000) 1,000 (5,400) (5,400) 4,300 (4,300) ( (3,300) (3,300) - = 1a. 102,500 1b. (59,500) 2. (1,000) + = x OA . 102,500 (59,500) (1,000) (5.400) 4,300 (3,300) . (5,400) + = 3b. + 4.300 = + = 4. + (3.300) + + Required a. Record the events in a statements model shown below. b. Prepare an income statement, a balance sheet, and a statement of cash flows. c. Why would Prentise agree to keep the damaged goods? ded Complete this question by entering your answers in the tabs below. Required A. Required B1 Required B2 Required B3 Required C Prepare an income statement for Powell Company. POWELL COMPANY Income Statement For the Year Ended December 31, Year 3 Net sales $ 93,800 Sales returns and allowances 9,000 X Gross margin 84,800 Operating expenses Transportation-out 1,000 Net income $ 83,800 Required a. Record the events in a statements model shown below. b. Prepare an income statement, a balance sheet, and a statement of cash flows. c. Why would Prentise agree to keep the damaged goods? Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Required c Prepare a statement of cash flows for Powell Company. (Amounts to be deducted should be indicated with minus sign.) POWELL COMPANY Statement of Cash Flows For the Year Ended December 31, Year 3 Cash flow from operating activities Cash inflow from customers 83,500 Cash outflow for expenses 56,200 X $ 139,700 0 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 139,700 43,000 > $ 182,700 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect: no points deducted