Working backward to the income statement. Tertia Company presents incomplete post-closing trial balances (Exhibit 3.22), as well as a statement of cash receipts and disbursements (Exhibit 3.23). Prepare a combined statement of income and retained earnings for Year 2. (Hint: Set up T-accounts for each of the balance sheet accounts listed in the trial balance, and enter the amounts shown as of January 1, Year 2, and December 31, Year 2. Starting with the cash receipts and disbursements for the year, reconstruct the transactions that took place during the year, and enter them in the appropriate T-accounts. The Retained Earnings account reflects the effect of earnings activities for the year because the firm has made closing entries.)