11 Part 3 of 4 5 points Required information [The following information applies to the questions displayed below.) The trial balance for Terry's Auto Shop as of January 1 Year 2, follows: Account Titles Debit Credit Cash $14,670 Tnventory 3,030 Common Stock $ 7,400 Retained Earnings 10,300 Total 517,700 517.700 Book Hint The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4.160 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $240 cash. 3. Returned $485 of damaged merchandise for credit on account 4. Agreed to keep other damaged merchandise for which the company received an $215 allowance 5. Sold merchandise that cost $2,600 for $13.700 cash 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $120 cash 7. Paid $2.930 on the merchandise purchased in Event 8. Paid $8,580 cash for operating expenses. merces c. Prepare a multistep income statement, balance sheet and statement of cash flows. (Assume that closing entries have been made) Complete this question by entering your answers in the tabs below. Income Raah Statement of ME 1 c. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closin Answer is not complete. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Statement of Cash Flows Prepare an income statement. TERRY'S AUTO SHOP Income Statement For the Year Ended December 31, Year 2 Net sales 13,700 Cost of goods sold 2,600 Gross margin 11.100 Operating expenses 8,580 Transportation-out 120 Net income $ 2,400 Balance Sheet > 11 c. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing Answer is not complete. Part 3 of 4 Complete this question by entering your answers in the tabs below. 5 points Income Statement Balance Sheet Statement of Cash Flows Prepare a balance sheet. TERRY'S AUTO SHOP Balance Sheet As of December 31, Year 2 Assets Cash $ 16,500 Merchandise inventory 4,130 0 $ 20,630 Total assets Liabilities Accounts payable . 530 $ 530 Total liabilities Stockholders' equity Common stock Retained earnings $ 7,400 12,700 11 c. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been mac Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. art 3 of 4 Income Statement of Statement Balance Sheet Cash Flows Prepare a statement of cash flows. (Assume that closing entries have been made.) (Statement of Cash Flows only, items to be deducted must be indicated with a negative amount.) TERRY'S AUTO SHOP Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities Cash inflow from customers $ 13,700 Cash outflow for inventory 03 Cash outflow for expenses (11,100) $ 2,600 0 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Plus Beginning cash balance Ending cash balance 2,600 OX $ 2.600