Bradley Company engaged in the following transactions during Year 1:

1. Started the business by issuing $54,000 of common stock for cash.

2. The company purchase $30,000 of inventory on account, with terms 1/10, n/30. (Net of discount).

3. The company sold inventory that cost $22,000 for $65,600 cash.

4. The company paid the purchase of inventory, within the discount period.

5. Operating expenses incurred and paid during the year, $17,300.

Bradley Company engaged in the following transactions during Year 2:

1) The company paid cash to purchase $30,500 of inventory.

2) The company sold inventory that cost $28,800 for $59,000 cash.

3) Operating expenses incurred and paid during the year, $13,000.

Note: Bradley uses the perpetual inventory system.

REQUIRED: Prepare the accounting equation. Prepare the Income Statement (Multiple Step) and the Balance Sheet, for both years.