Working backward to the income statement. Tertia Company presents balance sheets at the beginning and end of Year 2 (Exhibit 3.17). as well as a statement of cash receipts and disbursements (Exhibit 3.18). Prepare a combined statement of income and retained earnings for Year 2. {Hint: Using the transactions spreadsheet template available with this book, set up accounts for each of the balance sheet accounts 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 rows and columns of the spreadsheet. The Retained Earnings account reflects the effect of earnings activities and dividends for Year 2.)