Powell Company began the Year 2 accounting period with $18,200 cash, $60,700 inventory,

Powell Company began the Year 2 accounting period with $18,200 cash, $60,700 inventory, $49,300 common stock, and $29,600 retained earnings. During Year 2, Powell experienced the following events: Sold merchandise that cost $37,900 for $75,900 on account to Prentise Furniture Store. Delivered the goods to Prentise under terms FOB destination. Freight costs were $380 cash. Received returned goods from Prentise. The goods cost Powell $1,930 and were sold to Prentise for $3,980. Granted Prentise a $1,100 allowance for damaged goods that Prentise agreed to keep. Collected partial payment of $53,400 cash from accounts receivable. c. Prepare an income statement, balance sheet, and statement of cash flows. (Statement of Cash Flows only, items to be deducted must be indicated with a negative amount.)

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