this is all one question.

! Required information Exercise 4-16A (Static) 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 $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. During Year 2, Powell experienced the following events: 1. Sold merchandise that cost $58,000 for $99,500 on account to Prentise Furniture Store. 2. Delivered the goods to Prentise under terms FOB destination. Freight costs were $900 cash. 3. Received returned goods from Prentise. The goods cost Powell $4,000 and were sold to Prentise for $5,900. 4. Granted Prentise a $3,000 allowance for damaged goods that Prentise agreed to keep. 5. Collected partial payment of $81,000 cash from accounts receivable. Exercise 4-16A (Static) Part c Required ces Req C1 Req C2 Req C3 Prepare a multistep income statement. POWELL COMPANY Income Statement For the Year Ended December 31, Year 2 $ Net sales Cost of goods sold Gross margin Operating expenses Transportation-in Net income $ 90,600 (54,000) 36,600 (900) 35,700 * Req C1 Req C2 Prepare a balance sheet. Assets Total assets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity Req C3 POWELL COMPANY Balance Sheet As of December 31, Year 2 $ $ 0 es Req C1 Req C2 Req C3 Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.) POWELL COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance