Blooming Flower Company was started in Year 1 when it acquired $60,000 cash from the issue of common stock. The following data summarize the company's first three years' operating activities. Assume that all transactions were cash transactions Purchases of Inventory Sales Cost of goods sold Selling and administrative expenses Tear 1 Year 2 Year) $50,000 $60,000 $ 85,000 68,000 85.000 130,000 34,000 43,000 71,000 29,000 35,000 42,000 Required Prepare an income statement (use multistep format and balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in T-accounts before preparing the statements for that year) BLOOMING FLOWER COMPANY Income Statements For the Year Ended December 31 Yeart Year 2 Year) et sales 5 68,000 $ 85,000 $ 130,000 Cost of goods sold 34.000 43.000 71.000 Gross margin 34.000 42,000 50.000 Operating expenses Seting and administrative 29.000 25.000 12.000 at income 5.000 $ 7.000 5 17.000 ok BLOOMING FLOWER COMPANY Balance Sheets As at December 31 Year 1 Year 2 Year 3 Assets Total assets 0 0 0 Liabilities Stockholders' equity 0 0 Total stockholders' equity Total liabilities and stockholders' equity 0 0 $ $ 0 $ 0