hw 3 problems 2-4

The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follow: The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,180. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $275 cash. 3. Returned $490 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company recelved a $250 allowance. 5. Sold merchandise that cost $2,640 for $4,790 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $135 cash. 7. Pald $2,830 on the merchandise purchased in Event 1. TERRY'S AUTO SHOP Eifect of Events on the Financial Statements Complete this question by entering your answers in the tabs bel Prepare an income statement. TERRY'S AUTO SHOP Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities: \begin{tabular}{|l|l|} \hline & \\ \hline Net cash flow from operating activities & \\ \hline Cash flows from investing activities & \\ \hline Cash flows from financing activities: & \\ \hline Net change in cash & \\ \hline & \\ \hline Ending cash balance & \\ \hline \end{tabular}