Problem 2 The following items were taken from the accounting records of Cadillac Ranch, Incorporated. The income statement account balances are for the year ending December 31, 2008. The balance sheet account balances are the balances at December 31, 2008 except for the retained earnings balance which is the balance at 1/1/2008: Accounts Payable Prepaid Insurance Land Cash Freight out Rent Expense Cost of goods sold Insurance Expense Retained Earnings (beg) Sales Revenue Equipment Supplies Expense Income tax rate $ 45,000 21,000 524,000 586,000 11,000 10,000 100,000 2,500 1,045,000 232,000 65,000 1,000 45% Accounts Receivable, net Unearned Revenue Advertising Expense Common Stock Notes Receivable (long-term) Dividends Interest Revenue Notes Payable (long-term) Salaries Expense Inventory Accumulated Depreciation Salaries Payable $ 7,000 14,000 28,000 98,000 70,000 2,000 16,000 48,000 85,000 20,000 2,500 Instructions: Prepare a multiple step income statement