Drenam a holonm ohnat Prepare a statement of cash flows. (Assume that closing entries have beer minus sian I) Required information [The following information applies to the questions displayed below] The trial balance for Terry's Auto Shop as of January 1, Year 2, follows: The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,220. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $275 cash. 3. Retumed $475 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $230 allowance. 5. Sold merchandise that cost $2,570 for $13,800 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $105 cash. 7. Paid $2,880 on the merchandise purchased in Event 1. 8. Paid $8,530 cash for operating expenses. c. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been made.) Complete this question by entering your answers in the tabs below. Prepare an income statement. Prepare an income statement