EXERCISE 2 Shown in random order is a list of balance sheet items for an agricultural business Margo Farm at September 30, 2021. Land 50,000 Fences and Gates 14,100 Barns and Sheds 19,100 Irrigation System 10,200 Notes Payable 65,000 Cash 9,300 Accounts Receivable 15,000 Livestock 5,000 Apple Trees 84,000 Farm Machinery 20,000 Accounts Payable 8,100 Wages Payable 1,200 Property Taxes Payable 4,700 Retained Earnings ? Capital Stock 100,000 Instructions: (1) Prepare a balance sheet by using these items and computing the amount for Retained Earnings. Use a sequence of assets similar to that illustrated in Chapter 2 of the textbook. Include a proper heading for your balance sheet. (20 points) (2) Explain common forms of business ownership-sole proprietorship, partnership, and corporation-and demonstrate how they differ in terms of their statements of financial position. (5 points) (3) Discuss the importance of financial statements to a company and its investors and creditors and why management may take steps to improve the appearance of the company in its financial statements. (5 points)