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At the beginning of 2018, the Redd Company had the following balances in its accounts: Cash Inventory Common stock Retained earnings $ 8,100 2,100 7,600 2,600 During 2018, the company experienced the following events: 1. Purchased inventory that cost $5,600 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $510 were paid in cash. 2. Returned $300 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 Redd Company within the cash discount period. 4. Sold inventory that had cost $6,100 for $9,100 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $510 and was sold to the customer for $810 cash. The customer was paid $810 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $610 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. Complete this question by entering your answers in the tabs below. Req C1 Req C2 Req C3 Reg C4 Prepare a multistep income statement. REDD COMPANY Income Statement For the Year Ended December 31, 2018 Net sales Cost of goods sold Gross loss Operating expenses Transportation-out Net income REDD COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2018 Beginning common stock 0 $ 0 Ending common stock Beginning retained earnings Plus: Net income Ending retained earnings Total stockholders' equity 0 $ $ 0 REDD COMPANY Balance Sheet As of December 31, 2018 Assets Total assets $ 0 Liabilities Stockholders' Equity $ 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 REDD COMPANY Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities Inflow from customers Outflow for inventory Outflow for expenses 0 $ 0 0 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 0 $ 0 REDD COMPANY Horizontal Statements Model - 2018 Balance Sheet Income Statement Assets Event + Statement of Cash Flows Revenue Liabilities Accounts Payable Expenses Net Income Accounts Receivable Cash + + + Stockholders' Equity Common Retained Stock Earnings 7,600 2,600 Merchandise Inventory 2,100 + Bal. 8,100 + + + + 1a. 0 + 0 5,600 = 5,600 + 0 + 0 0 0 > 0 0 1b. (510) + + 510 0 + 0 + 0 0 0 II 0 (510) O o 2. 0 + 0 + + 0 0 0 0 0 0 (300) (106) (300) (5,300) 3. (5,194) + 0 + + 0 + 0 0 0 0 (5,194) 4a. 0 + 9,100 0 0 0 + 9,100 9,100 0 9,100 0 4b. 0 + 0 + II (6,100) 0 + 0 + 0 6,100 0 5a. (810) + 0 0 0 + 0 + (6,100) (810) 510 (810) 0 (6,100) (810) 510 (810) 5b. 0 + 0 + 510 0 + 0 + 0 0 (510) 610 6. + 0 + 0 0 + 0 (610) (610) 8,918 7. + (9,100) + 0 0 + 0 + (182) 0 8,918 (610) (182) (414) 4,094 (610) (182) (414) 1,494 8. 0 + 0 + 0 + 0 + 0 414 0 (414) 1,800 Bal. $ 9,894 + $ 0 + $ $ 0 + $ 7,600 + $ $ 8,108 $ 6,614 $ $ 1,794 NC