The finance tean of an automobile company is drafting budget for succeeding year. Arrange the steps in preparing a budget. team computes annual expenses such as
electricity bills, wages and taxes.
all departments submit yearly estimated
expenses.
team prioritizes purchase of new
machinery for improved production.
team dedicates some funds for
emergency
submits report of estimated income and
expense data.
ntoe und oodod for veary bonus

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?