Powell Company began the 2018 accounting period with $42,000 cash, $88,000 inventory $62,000 common stock, and $68,000 retained earnings. During 2018, Powell experienced the following events: 1. Sold merchandise costing $59,000 for $101,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $900 cash. 3. Received returned goods from Prentise. The goods cost Powell $4,200 and were sold to Prentise for $5,200. 4. Granted Prentise a $3,200 allowance for damaged goods that Prentise agreed to keep 5. Collected partial payment of $82,500 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. c. Why would Prentise agree to keep the damaged goods? $ Req A Reg B1 Reg B2 Req B3 Reg C 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 to designate operating activity, IA for investing activity, FA for financing activity, and for no affect, leave the cell blank. Not every cell will require entry. - Event No. Statement of Cash Flows nt POWELL COMPANY Financial Statements Model for 2018 Stockholders' Equity Income Statement Common Retained Net Inventory - Revenue Stock Earnings Expenses - Income 88,000 = 62,000 68,000 Assets Cash Accounts Receivable 42,000+ Bal. + ences 1a. 1b. 2 3a 3b 4. + 5. Total 42.000 88,000 62,000 68,000 Why would Prentise agree to keep the damaged goods? Complete this question by entering your answers in the tabs below. Req A Req B1 ok Req B2 Req B3 Reqc Prepare an income statement for Powell Company. int POWELL COMPANY Income Statement For the Year Ended December 31, 2018 rences 0 Operating expenses $ 0 Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 ReqC Prepare a balance sheet for Powell Company. ook POWELL COMPANY Balance Sheet As of December 31, 2018 Assets Hint erences $ 0 Total assets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity 0 $ 0 Complete this question by entering your answers in the tabs below. ts Req A Req B1 Req B2 Req B3 Reqc Prepare a statement of cash flows for Powell Company. (Amounts to be deducted should be indicated with minus eBook Hint POWELL COMPANY Statement of Cash Flows For the Year Ended December 31, 2018 Cash flow from operating activities References $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 Ending cash balance $ 0 Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Reqc Why would Prentise agree to keep the damaged goods? (Select which of the following statements (is) are true by selecting an "X".) Get goods at reduced cost. Can resell the damaged goods Repair the damaged goods. Retain the damaged goods, ( Req B3 Regc