Question

Junkers Stash started the Year 2 accounting period with the balances given in the following horizontal financial statements
Required a. Record the above transactions in a horizontal financial statements model. b. Determine the amount of net sales. c
Usil, eller any decreases to account balances and cash outflows with a minus sign. Not all cells in the Statement of Cash Fl
Required A Required B Required C Required D Determine the amount of net sales. (Round your intermediate calculations and fina
Required A Required B Required C Required D Prepare a multistep income statement. Include common size percentages on the inco
Required A Required B Required Required D The return-on-sales ratio for Junkers Stash during the prior year was 12 percent.
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Answer #1
Net Sales (106500-2560)          103,940
Discount (103940*1%)              1,039
Payment received          102,901
Loss on sale of land (15600-10250)              5,350

Part 1

Financial statement model
Balance sheet Income statement Statement of cash flows
Assets Stockholder's equity
Event. No. Cash Accounts receivable Inventory Land Common stock Retained earnings Revenue Expenses Net income
Beg. Balance    103,000            17,300      15,600      93,000      42,900
1    (93,000)            93,000    (93,000) Operating activity
2
3a         106,500    106,500    106,500    106,500
3b          (53,400)    (53,400)      53,400    (53,400)
4a           (2,560)      (2,560)      (2,560)      (2,560)
4b               1,480         1,480      (1,480)         1,480
5      (1,880)      (1,880)         1,880      (1,880)      (1,880) Operating activity
6a           (1,039)      (1,039)      (1,039)      (1,039)
6b    102,901       (102,901)                -                  -      102,901 Operating activity
7      (7,425)      (7,425)         7,425      (7,425)      (7,425) Operating activity
8      10,250    (15,600)      (5,350)         5,350      (5,350)      10,250 Investing activity
End. Bal    113,846                     -              58,380                -        93,000      79,226    102,901      66,575      36,326      10,846 Net change in cash (NC)

Part 2

Sales         106,500
Sales Returns (less)           (2,560)
Sales Discounts (less)           (1,039)
Net Sales         102,901

Part 3

Income statement
For the Year Ended December 31, Year 2
Net Sales    102,901 100.0%
Less: Cost of Goods Sold (53400-1480)      51,920 50.5%
Gross profit      50,981 49.5%
Operating Expenses
Selling and Adm. Expenses               7,425 7.2%
Transportation-Out               1,880 1.8%
Total Operating Expenses         9,305 9.0%
Operating Income      41,676 40.5%
Non-Operating Items
Loss on Sale of Land      (5,350) -5.2%
Net income      36,326 35.3%

From each line item ratio is amount of line item by divided by sales.

Part 4

Year 2 of Profit ratio is more than precious's year profit ratio.
Higher profit ratio indicates the company have low expenses.
Answer: Decreases
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