d. Prepare a multistep income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for year 2. (Statement of Cash Flows only, items to be deducted must be indicated with a minus sign.) Answer is not complete. REDD COMPANY Income Statement For the Year Ended December 31, Year 2 Net sales $ 10,178 Cost of goods sold 6,542 Gross margin 3,636 Operating expenses Transportation-out (140) 3.496 Operating income Nonoperating items Sales returns and allowances Sales discounts Cost of goods sold 400 6.800 x 10.696 Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does required information (The following information applies to the questions displayed below! At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash Inventory Land Common stock Retained earnings $ 6,909 15,000 7.000 15,000 13,909 During Year 2, the company experienced the following events: 1. Purchased inventory that cost $5,200 on account from Ross Company under terms 1/10,n/30. The merchandise was delivered FOB shipping point. Freight costs of $190 were paid in cash. 2. Returned $400 of the inventory it had purchased from Ross Company because the inventory was damaged in transit. The seller agreed to pay the return freight cost. 3. Paid the amount due on its account payable to Ross Company within the cash discount period. 4. Sold inventory that had cost $6,800 for $12,100 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $900 and was sold to the customer for $1,680 cash. The customer was paid $1,680 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $140 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $8.500. 9. Recognized accrued interest income of $600. 10. Took a physical count indicating that $13.400 of inventory was on hand at the end of the accounting period. (Hint: Determine the current balance in the inventory account before calculating the amount of the inventory write down.) Check my work mode : This shows what is correct or Required information & Answer is not complete. REDD COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Total stockholders' equity Answer is not complete. REDD COMPANY Balance Sheet As of December 31, Year 2 Check my work mode: This shows what is correct or ind Required information Answer is not complete. REDD COMPANY Balance Sheet As of December 31, Year 2 Assets Total assets Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders equity