la prepare the year ended December 31, Year 2. Use the indirect method for the operating activities section. You may prepare se stem ally or wie a spreadsb. CBA Coman Balance Sheets A: December 31 Year 2 Assets: Cash S85.600 5 65.200 Accounts receivable.net 72.850 56,750 Merchandise inventory 157.750 144.850 Presidente 6.RO 12.680 Feuisment 250.600 245.600 Accumulated desreciatica-Eeuismees (50.6001 197.600 Total assets $ 522,280 $ 427,480 Liabilities: Accounts tuvale S$2.850 5 45.450 Income taxes wwvable 15.200 12.240 Notes cavable loete 99 200 79.200 Total liabilities 5 127,200 $ 136,890 Ful Common stock 200.000 150.000 Paid-in cattail in excess of our $3.000 40.000 Retained carings 141,990 100,590 Totalcauity 5 394.990 $ 290.590 Total liabilities and county S $22.280 $427.480 CBA Company Income Statement For Year Ended December 31. Year 2 $ 458.000 Cost of woods sold $ 212.500 Deseciation exetsie 43.000 Other operating experies 106,260 Interest extende 6.400 (368.2001 Other info test: Gain on sale of canismes 4.700 Income before taxes 124,500 Income es cele sa na 41.100 Additional Information A $20,000 nate payable is retired at its carrying value in exchange for cash L. The only changes affecting retained camnings are net income and cash dividenda paid. New equipment is acquired for $120,000 cash. 4. Received cash for the sale of equipment that had cos 585,000 yielding again or 54,700. 6. Prepaid experies relate to other Expenses on the income statement All purchases and sales of merchandise inventory are on credit