Required information [The following information applies to the questions displayed below.] The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follow: Account Titles Cash Inventory Common Stock Retained Earnings Beginning Balances $6,050 3,090 7,410 1,730 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,300. 2. The goods in Event 1 were purchased FOB shipping point with transportation cost of $270 cash. 3. Returned $455 of damaged merchandise. 4. Agreed to keep other damaged merchandise for which the company received a $270 allowance. 5. Sold merchandise that cost $2,570 for $4,800 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $115 cash. 7. Paid $2,970 on the merchandise purchased in Event 1. Terry Inc Stmt Terry Stmt CF Prepare an income statement. TERRY'S AUTO SHOP Income Statement For the Year Ended December 31, Year 2 Operating expenses 0 $ 0 Terry Inc Stmt Terry Stmt CF Prepare a statement of cash flows. (Cash outflows should be indic TERRY'S AUTO SHOP Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance $ 0 0 $ 0