Transcribed image text : Check my work Academy Sales Company (ASC) started the Year 2 accounting period with the balances given in the financial statements model shown as follows. During Year 2. ASC experienced the following business events: 1. Purchased $33,000 of merchandise inventory on account, terms 2/10, n/30. 2. The goods that were purchased in Event 1 were delivered FOB shipping point. Freight costs of $770 were paid in cash by the responsible party 3. Returned $1000 of goods purchased in Event 1 4. (a) Recorded the cash discount on the goods purchased in Event 1 (0) Paid the balance due on the account payable within the discount period 5. (a) Recognized $40,000 of cash revenue from the sale of merchandise (b) Recognized $32,000 of cost of goods sold. 6. The merchandise in Event 5a was sold to customers FOB destination. Freight costs of $1120 were paid in cash by the responsible party 7. Paid cash of $5.700 for selling and administrative expenses. 8. Sold the land for $11,500 cash Required a. Record these transactions in a financial statements model b. Prepare a schedule of cost of goods sold (Appendix) c. Prepare a multistep income statement. Include common size percentages on the income statement d. ASC's gross margin percentage in Year 1 was 18 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? Complete this question by entering your answers in the tabs below. Rega Regc Reg D and Record these transactions in a financial statements model in the Cash Flow column, use the initials OA to designate operating activity, IA for investing activi 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 ACADEMY SALES COMPANY Financial Statements Model