Required information The following information applies to the questions displayed below At the beginning of 2018, the Redd Company had the following balances in its accounts Cash $ 8,400 Inventory 2,400 Common stock 7,900 Retained earnings 2,900 During 2018, the company experienced the following events Purchased inventory that cost $5,900 on account from Ross Company under terms 2 10, n 30 The merchandise was delivered FOB shipping point Freight costs of $540 were paid in cash Returned $400 of the inventory that it had purchased because the inventory was damaged in transit The seller agreed to pay the return freight cost Paid the amount due on its account payable to Redd Company within the cash discount period Sold inventory that had cost $6,400 for $9,400 on account, under terms 2 10, n 45 Received merchandise returned from a customer The merchandise originally cost $540 and was sold to the customer for $840 cash The customer was paid $840 cash for the returned merchandise Delivered goods FOB destination in Event 4 Freight costs of $640 were paid in cash Collected the amount due on the account receivable within the discount period Took a physical count indicating that $2,100 of inventory was on hand at the end of the accounting period rev 04 30 2020 QC CS 210527 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 Below are images of my partial correct question please help where i am wrong thank you Prepare a multistep income statement REDD COMPANY Income Statement For the Year Ended December 31, 2018 Net sales $ 8,560 Cost of goods sold (5,800) Gross margin 2,760 Operating expenses Transportation out (640) Net income $ 2,120 X Prepare a statement of changes in stockholders' equity stock REDD COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2018 Beginning common $ 7,900 Plus Stock issued 2,120 Ending common stock $ 10,020 Beginning retained $ 2,900 earnings Plus Net income (2,120) Ending retained 780 earnings Total stockholders' $ 10,800 equity Prepare a balance sheet X REDD COMPANY Balance Sheet As of December 31, 2018 Assets Cash $ 8,400 Merchandise inventory 2,400 Accounts receivable 0 Total assets $10,800 Liabilities $ 0 Stockholders' Equity Accounts payable x $ 0 Common stock 7,900 Retained earnings 2,900 X Total stockholders' equity $10,800 $ Prepare a statement of cash flows (Enter cash outflows as negative amounts ) REDD COMPANY Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities Inflow from customers $ (540) Outflow for inventory (5,390) Outflow for expenses (840) 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 $ (6,770) (640) 9,212 X 1,802 $ 1,802

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Required information [The following information applies to the questions displayed below.] At the beginning of 2018, the Redd Company had the following balances in its

Required information

[The following information applies to the questions displayed below.] At the beginning of 2018, the Redd Company had the following balances in its accounts:


Cash	$	8,400
Inventory		2,400
Common stock		7,900
Retained earnings		2,900

During 2018, the company experienced the following events:

Purchased inventory that cost $5,900 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $540 were paid in cash.
Returned $400 of the inventory that it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost.
Paid the amount due on its account payable to Redd Company within the cash discount period.
Sold inventory that had cost $6,400 for $9,400 on account, under terms 2/10, n/45.
Received merchandise returned from a customer. The merchandise originally cost $540 and was sold to the customer for $840 cash. The customer was paid $840 cash for the returned merchandise.
Delivered goods FOB destination in Event 4. Freight costs of $640 were paid in cash.
Collected the amount due on the account receivable within the discount period.
Took a physical count indicating that $2,100 of inventory was on hand at the end of the accounting period.

rev: 04_30_2020_QC_CS-210527

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.

Below are images of my partial correct question please help where i am wrong thank you

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Prepare a multistep income statement. REDD COMPANY Income Statement For the Year Ended December 31, 2018 Net sales $ 8,560 Cost of goods sold (5,800) Gross margin 2,760 % Operating expenses Transportation-out (640) Net income $ 2,120 X Prepare a statement of changes in stockholders' equity. stock REDD COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2018 Beginning common $ 7,900 Plus: Stock issued 2,120 Ending common stock $ 10,020 Beginning retained $ 2,900 earnings Plus: Net income (2,120) Ending retained 780 earnings Total stockholders' $ 10,800 equity Prepare a balance sheet. X REDD COMPANY Balance Sheet As of December 31, 2018 Assets Cash $ 8,400 Merchandise inventory 2,400 Accounts receivable 0 Total assets $10,800 Liabilities $ 0 Stockholders' Equity Accounts payable x $ 0 Common stock 7,900 Retained earnings 2,900 X Total stockholders' equity $10,800 $ Prepare a statement of cash flows. (Enter cash outflows as negative amounts.) REDD COMPANY Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities Inflow from customers $ (540) Outflow for inventory (5,390) Outflow for expenses (840) 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 $ (6,770) (640) 9,212 X 1,802 $ 1,802