Powell Company began the Year 3 accounting period with $33,000 cash, $7,000 iftventory, $52,000 common stock, and $52,000 retained eamings: During Yoar 3 , Powelf experienced the following events: 1. Sold merchandise costing $45,500 for $96,000 on account to Prentise Fumiture Store. 2. Delivered the goods to Prentise under terms FOB destination. Transportation costs were $1,200 cash. 3. Received returned goods from Prentise. The goods cost Powell $5,300 and were sold to Prentise for $4,700. 4. Granted Prentise a $2,300 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $76,000 cash from accounts recelvable. Required: a. Record the events in a horizontal financial stotements modeL. b. Prepare an income statement, a balance sheet, and a statement of cash tiows. Record the events in a horizontal financial statements model. Note: In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and NC to account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave input needed. c. Why would Prentise agree to keep the damaged goods? Get goods at reduced cost. Can resell the damaged goods. Repair the damaged goods. Retain the damaged goods. Prepare a balance sheet for Powell Company. c. Why would Prentise agree to keep the damaged goods? Get goods at reduced cost. Can resell the damaged goods. Repair the damaged goods. Retain the damaged goods. Note: Cash outflows should be indicated with a minus sign. c. Why would Prentise agree to keep the damaged goods? Get goods at reduced cost. Can resell the damaged goods. Repair the damaged goods. Retain the damaged goods