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The trial balance for Terry's Auto Shop as of January $1,$ Year $2,$ follows:

The following events affected the company during the Year $2$ accounting period:

Purchased merchandise on account that cost $$4,160.$

The goods in Event $1$ were purchased FOB shipping point with freight cost of $$250$ cash.

Returned $$495$ of damaged merchandise for credit on account.

Agreed to keep other damaged merchandise for which the company received an $$205$ allowance.

Sold merchandise that cost $$2,720$ for $$13,400$ cash.

Delivered merchandise to customers in Event $5$ under terms FOB destination with freight costs amounting to $$105$ cash.

Paid $$2,950$ on the merchandise purchased in Event $1.$

Paid $$8,850$ cash for operating expenses.

c$.$ Prepare a multistep income statement, balance sheet, and statement of cash flows. $($Assume that closing entries have been made.$)$

Answer is not complete.

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Income

Statement of

Cash Flows

Prepare a statement of cash flows. $($Assume that closing entries have been made.$)($Cash outflows should be indicated with a

minus sign.$)$