please explain

Powell Company began the Year 3 accounting period with $4?,000 cash, $93,000 inventory, $671000 common stock, and $73,000 retained earnings. During Year 3, Powell experienced the following events: 1. Sold merchandise costing $61,500 for $106,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOE destination. Freight costs were $7'OO cash. 3. Received returned goods from Prentise. The goods cost Powell $4,700 and were sold to Prentise for $7,200. 4. Granted Prentise a $3,700 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $81500 cash from accounts receivable. 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. 1:. Why would Prentise agree to keep the damaged goods? Rel] A Rel] B]. Rel] BZ Rel] BB Rel] C Record the events in a slatements model shown below. {Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, use the initials 0A to designate operating activity, IA for investing activity, FA for nancing activity, or NC for net change in cash. If the account is not affected by the event, leave the cell blank. Not every cell will require entry.) IIIII= - -!!!--H--- + + : + Prepare an income statement for Powell Company POWELL COMPANY Income Statement For the Year Ended December 31, Year 3 Operating expenses\fPrepare a statement of cash flows for Powell Company. (Cash outflows should be indicated with a minus sign.) POWELL COMPANY Statement of Cash Flows For the Year Ended December 31, Year 3 Cash flow from operating activities Net cash flow from operating activities Cash flows from investing activities: Cash flows from financing activities: Net change in cash Ending cash balanceWhy would Prentise agree to keep the damaged goods? (Select "Yes" if the item is a reason to agree, and "No" if it is not.) Get goods at reduced cost. Can resell the damaged goods. Repair the damaged goods. Retain the damaged goods