Help Se At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash Inventory Common stock Retained earnings $8,400 2,000 8,000 2.400 During Year 2, the company experienced the following events: 1. Purchased inventory that cost $5,600 on account from Ross Company under terms 2/10, 1/30. The merchandise was delivered FOB shipping point. Freight costs of $500 were paid in cash. 2. Returned $400 of the inventory that it had purchased 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 $6,000 for $9,000 on account, under terms 2/10,n/45, 5. Received merchandise returned from a customer. The merchandise originally cost $520 and was sold to the customer for $840 cash. The customer was paid $840 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $600 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Took a physical count indicating that $1,800 of Inventory was on hand at the end of the accounting period. c-1. Prepare a multistep income statement. c-2. Prepare a statement of changes in stockholders' equity c-3. Prepare a balance sheet c-4. Prepare a statement of cash flows. DARRER MARRRrlokalet it Required Information Complete this question by entering your answers in the tabs below. Req C1 Req c2 Reg C3 Reg C4 Prepare a multistep income statement. REDD COMPANY Income Statement For the Year Ended December 31, Year 2 Operating expenses Rect Reg C2 > 35.74 points Req C1 Req C2 Reg C3 Req C4 eBook Ask Prepare a statement of changes in stockholders' equity. REDD COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock Print References Ending common stock Beginning retained earnings Ending retained earings Total stockholders' equity Reg C1 Req C2 Reg C3 3 of 3 Req C4 Prepare a balance sheet. 14 ts REDD COMP+Y Balance Sheet As of December 31, Year 2 Assets Book Ask Print ferences Total assets Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity 7 Required information Reg C1 Reg C2 Reg C3 Req C4 t 3 of 3 Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.) 74 nts REDD COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities eBook Ask Print References Net cash flow from operating activities Cash flows from investing activities: Cash flows from financing activities: Net change in cash Ending cash balance
