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 Year 1 Year 2 Year 3 550,000 $60,000 SB5,000 68,000 85,000 130,000 34,860 43,000 71,00 29,000 35,eee 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 Years Year 2 Not sales 68,000 85.000 3 130.000 Cost of goods sold M1,000 13.000 71.000 So margin 34.000 42.000 50.000 Operating expenses Seling and administrative expenses 29.000 35.000 42.000 Not incomo 5 5.000 7.000 $ 17,000 BLOOMING FLOWER COMPANY Balance Sheets Asaf December 31 Nuu Juu 1,000 34,000 42,000 59,000 ILUSLY DU (Gross margin Operating expenses Selling and administrative expenses Net income 29,000 5,000 $ 35,000 7,000 $ 42,000 17,000 $ BLOOMING FLOWER COMPANY Balance Sheets As at December 31 Year 1 Year 2 Assets Merchandise inventory Cash Year 3 $ 0 $ $ 0 Total assets Liabilities Stockholders' equity Common stock Retained earings + Total stockholders' equity Total liabilities and stockholders' equity 0 0 $ 0 $ 0 0