Required Information Exercise 4-16A (Algo) Effect of sales returns and allowances and freight costs on the journal, ledger, and financial statements: Perpetual system LO 4-2, 4-4, 4-6, 4-7 [The following information applies to the questions displayed below.] Powell Company began the Year 2 accounting period with $20,000 cash, $61,200 inventory, $49,400 common stock, and $31,800 retained earnings. During Year 2, Powell experienced the following events: 1. Sold merchandise that cost $36,500 for $75,000 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $390 cash. 3. Received returned goods from Prentise. The goods cost Powell $1,810 and were sold to Prentise for $3.950. 4. Granted Prentise a $1,160 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $52,200 cash from accounts receivable. Exercise 4-16A (Algo) Part c Required c. Prepare a multistep income statement, a balance sheet, and a statement of cash flows. Complete this question by entering your answers in the tabs below. Req C1 Reg C2 Prepare a multistep income statement. Net sales Cost of goods sold Gross margin Operating expenses Transportation-out Reg C3 POWELL COMPANY Income Statement For the Year Ended December 31, Year 2 Net income S 0 0 Reg C1 Req C2 >

Required Information Exercise 4-16A (Algo) Effect of sales returns and allowances and freight costs on the joumal, ledger, and financial statements: Perpetual system LO 4-2, 4-4, 4-6, 4-7 [The following information applies to the questions disployed below] Powell Company began the Year 2 accounting period with $20,000 cash, $61,200 inventory. $49,400 common stock. and $31.800 retained earnings. During Year 2 . Powell experienced the following events: 1. Sold merchandise that cost $36,500 for $75,000 on account to Prentise Fumiture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $390 cash. 3. Received returned goods from Prentise. The goods cost Powell \$1,810 and were soid to Prentise for $3,950 4. Granted Prentise a $1,160 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $52.200 cash from accounts receivable Exercise 4-16A (Algo) Part C Required c. Prepare a multistep income statement, a balance sheet, and a statement of cash flows: Complete this question by entering your answers in the tabs below. Prepare a multistep income statement. Dequired c. Prepare a multistep income statement, a balance sheet, and a statement of cash fiows. Complete this question by entering your answers in the tabs below. Prepare a balance sheet. Required c. Prepare a multistep income statement, a balance sheet, and a statement of cash flows. Complete this question by entering your answers in the tabs below. Prepare an statement of cash flows, (Cash outflows should be indicated with a minus sign.)