1 Required information The following information applies to the questions displayed below.) Tof 5 Pratt Corp, started the Year 2 accounting period with total assets of $30,000 cash, $12,000 of liabilities, and $5,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $7,550. The bookkeeper reported that Pratt paid cash expenses of $26,000 and paid a $2,000 cash dividend to stockholders, but she could not find a record of the amount of cash revenue that Prott received for performing services, Pratt also paid $3,000 cash to reduce the liability owed to a bank, and the business acquired $4,000 of additional cash from the issue of common stock. Assume all transactions are cash transactions ok Required a. Prepare the Year 2 income statement PRATT CORP Income Statement For the Year Ended December 31, Year 2 Revenues Expenses Net Income $ 40