please use the info to fill out the charts. r3

Academy Sales Company {ABC} started the Year 2 accounting period with the balances given In the nancial statements model shown as follows. During Year 2, ABC experienced the tollowmg business events: 1. Purchased $17,000 of merchandise Inventory on account, terms 2I10, nI30. 2. The goods that were purchased In Event1 were delivered FOB shipping point Freight costs of $610 were paId In cash by the responsible party. 3. Returned $500 of goods purchased In Event 1. 4. {a} Recorded the cash discount on the goods purchased In Event 1. {b} Paid the balance due on the account payable within the discount period. 5. {a} Recognized $23,000 of cash revenue from the sale of merchandise. {b} Recognized $16,000 of cost of goods sold. 6. The merchandise In Event 5a was sold to customers FOB destination. Freight costs of $960 were paid in cash by the responsible party. 1'. Paid cash of $4,100 for selling and administrative expenses. 3. Sold the land for $6,500 cash. Required a. Record these transactions in a nancial statements model. b. Prepare a schedule of cost of goods sold {Appendix}. 1:. Prepare a muttistep Income statement. Include common size percentages on the Income statement. (1. 1180's gross margin percentage In Yiear 1 was 20 percent Based on the common size data in the Income statement, did ASC raise or lower its prices In Year 2 {Appendix}? e. Assuming a 10 percent rate of growth, what Is the amount of net Income expected for Year 3? Req A Req B Req C Req D and E Record these transactions in a financial statements model. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for Net change in cash. Enter any decreases to account balances with a minus sign. Not all cells require input. If there is no effect on the Account Titles for Statement of Cash Flows, leave the cell blank.) ACADEMY SALES COMPANY Financial Statements Model Balance Sheet Stockholders' Equity Income Statement Event No. Assets = Liabilities + Statement of Cash Flows Inventory Land Accounts Common Retained Revenue! Cash Payable Stock Earnings Gain Expense = Net Income Bal 26,000 4,000 6.000 + 19,000 + 17,000 = 1. 2. 3. 4a. 4b. 5a. 5b. 6. 7. 8. TotalsReq A Req B Req C Reg D and E Prepare a schedule of cost of goods sold (Appendix). ACADEMY SALES COMPANY Schedule of Cost of Goods Sold For the Period Ended December 31, Year 2 Beginning inventory Goods available for sale Cost of goods soldPrepare a mulstep income statement. Include common size percentages on le income statement. {Round percentage answers to 1 decimal place.) d. ASC's gross margin percentage in Year 1 was 20 percent. Based on the common size data in the income statement, did ASC raise or lower its prices in Year 2 (Appendix)? e. Assuming a 10 percent rate of growth, what is the amount of net income expected for Year 3? d. Sales prices Net income