The following Information was taken from the accounts of Green Market, a small grocery store, at December 31, Year 1. The accounts are listed in alphabetical order, and all have normal balancesDollar amounts are given in thousands

Powell Company began the Year 3 accounting period with $46,000 cash, $92,000 inventory$66,000 common stock, and $72,000 retained earningsDuring Year 3, Powell experienced the following events:

1. Sold merchandise costing $61,000 for $105,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Transportation costs were $800 cash.

3. Received returned goods from Prentise. The goods cost Powell $4,600 and were sold to Prentise for $6,000

4. Granted Prentise a $3,600 allowance for damaged goods that Prentise agreed to keep

5. Collected partial payment of $86,500 cash from accounts receivable. Required:

a. Record the events in a horizontal financial statements model.

b . Prepare an income statement, a balance sheet,

and a statement of cash flows.

Required: a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston

a-2. One of the companies is a high-end retailer that operates in exclusive shopping malls. The other operates discount stores located in low-coststandalone buildings. Identify the high-end retailer based on the ratios computed b. If Atlanta and Boston have stockholdersequity of $15,000 and $19,400, respectively, which company is in the more profitable business?

Prepare a income statement for Powell Company. If Atlanta and Boston have stockholders' equity of $15,000 and $19,400, respectively, which company is in the more profitable business? b: If Atlanta and Boston have stockholders' equity of $15,000 and $19,400, respectively, which company is in the more p business? Complete this question by entering your answers in the tabs below. One of the companies is a high-end retaller that operates in exclusive shopping malls. The other operates discount stores located in low-cost, standalone buildings. Identify the high-end retailer based on the ratios computed. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Note: Round your answers to the nearest whole percentage. 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 fo to account balances and cash outflows with a minus slon. Not all cells in the "Statement of Cash Flows" column may require an input - leave input needed. Prepare a balance sheet for Powell Company. Required: Prepare an income statement for the year using the single-step and multistep approach. Note: Enter values in thousands of dollars. Amounts to be deducted and losses should be indicated with a minus si Single-step Multistep Prepare a statement of cash flows for Powell Company. Note: Cash outflows should be indicated with a minus sign. Prepare a income statement for Powell Company. If Atlanta and Boston have stockholders' equity of $15,000 and $19,400, respectively, which company is in the more profitable business? b: If Atlanta and Boston have stockholders' equity of $15,000 and $19,400, respectively, which company is in the more p business? Complete this question by entering your answers in the tabs below. One of the companies is a high-end retaller that operates in exclusive shopping malls. The other operates discount stores located in low-cost, standalone buildings. Identify the high-end retailer based on the ratios computed. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Note: Round your answers to the nearest whole percentage. 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 fo to account balances and cash outflows with a minus slon. Not all cells in the "Statement of Cash Flows" column may require an input - leave input needed. Prepare a balance sheet for Powell Company. Required: Prepare an income statement for the year using the single-step and multistep approach. Note: Enter values in thousands of dollars. Amounts to be deducted and losses should be indicated with a minus si Single-step Multistep Prepare a statement of cash flows for Powell Company. Note: Cash outflows should be indicated with a minus sign