! Required information [The following information applies to the questions displayed below.) At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash Inventory Common stock Retained earnings $8,600 2,600 8,100 3,100 During Year 2, the compe experienced the following events: 1. Purchased inventory that cost $6,100 on account from Ross Company under terms 2/10, 1/30. The merchandise was delivered FOB shipping point. Freight costs of $560 were paid in cash. 2. Returned $350 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 $6,600 for $9,600 on account, under terms 2/10,n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $560 and was sold to the customer for $860 cash. The customer was paid $860 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $660 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Took a physical count indicating that $2,300 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. -.2 Pronaro n halanre cheat S omework Seved HE Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate com 1. Purchased inventory that cost $6,100 on account from Ross Company under terms 2/10, 1/30The merchandise was delivered FOB shipping point. Freight costs of $560 were paid in cash. 2. Returned $350 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 $6,600 for $9,600 on account, under terms 2/10, 1/45 5. Received merchandise returned from a customer. The merchandise originally cost $560 and was sold to the customer for $860 cash. The customer was paid $860 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $660 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Took a physical count indicating that $2,300 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg C1 Reg C2 Reg C3 Reg 04 Prepare a multistep income statement. REDD COMPANY > Next > - Pronare anaianra encar 7 Required information 3 of 3 Answer is not complete. Complete this question by entering your answers in the tabs below. Reg C1 Reg C2 Req C3 Reg C4 Prepare a multistep income statement. REDD COMPANY Income Statement For the Year Ended December 31, Year 2 Net sales $ 8,565 Cost of goods sold (6,040) Gross margin 2,525 Operating expenses Transportation-out (1,220) Net Income $ 1.410 K Reo C Reg C2 > art 3 of 3 Answer is not complete. Complete this question by entering your answers in the tabs below. Reqci Recz Req C3 Reg 4 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 $ 8,100 Plus: Stock issued Ending common stock $ 8,100 Beginning retained earnings $ 3,100 Plus: Not Income Ending retained earnings 3,100 Total stockholders' equity $ 11,200 Complete this question by entering your answers in the tabs below. Req c1 Req c2 Req3 Req C4 Prepare a balance sheet. REDD COMPANY Balance Sheet As of December 31, Year 2 Assets Merchandise inventory Cash $ 0 Total assets Liabilities Stockholders' Equity $ Total stockholders' equity Total liabilities and stockholders' equity 0 0 $ co Complete this question by entering your answers in the tabs below. of 3 Req ci Req C2 Reg C3 Req C4 Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.) REDD COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities 0 Net cash flow from operating activities Cash flows from investing activities: Cash flows from financing activities: Net change in cash 0 Ending cash balance 0