At the beginning of Year $2,$ the Redd Company had the following balances in its accounts:

$\backslash$table$[[$Cash$,8,500],[$Inventory$,2,500],[$Common stock,$8,000],[$Retained earnings,$3,000]]$

During Year $2,$ the company experienced the following events:

Purchased inventory that cost $$6,000$ on account from Ross Company under terms $\frac{2}{10},\frac{n}{30}.$ The merchandise was delivered FOB shipping point. Transportation costs of $$550$ were paid in cash.

Returned $$400$ of the inventory it had purchased because the inventory was damaged in transit. The seller agreed to pay the return transportation cost.

Paid the amount due on its account $ ayable to Ross Company within the cash discount period.

Sold inventory that had cost $$6,500$ for $$9,500$ on account, under terms $\frac{2}{10},\frac{n}{45}.$

Received merchandise returned from a customer. The merchandise originally cost $$550$ and was sold to the customer for $$850$ cash. The customer was paid $$850$ cash for the returned merchandise.

Delivered goods FOB destination in Event $4.$ Transportation costs of $$650$ were paid in cash.

Collected the amount due on the account receivable within the discount period.

Took a physical count indicating that $$2,200$ of inventory was on hand at the end of the accounting period.

c$-1.$ Prepare a multistep income statement.

c$-2.$ Prepare, a statement of changes in stockholders' equity.

c$-3.$ Prepare a balance sheet.

c$-4.$ Prepare a statement of cash flows.