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: Beginning Balances Account Titles Cash Inventory Common Stock Retained Earnings $ 6,010 3,080 7,410 1,680 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,290. 2. The goods in Event 1 were purchased FOB shipping point with transportation cost of $245 cash. 3. Returned $410 of damaged merchandise. 4. Agreed to keep other damaged merchandise for which the company received a $275 allowance. 5. Sold merchandise that cost $2,670 for $4,940 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $100 cash. 7. Paid $2.930 on the merchandise purchased in Event 1. b. Prepare an income statement and a statement of cash flows for Year 2. (Assume that closing entries have been made.) M.FICUOIC OF CULIC SOLCHICIAL DRUG SOLCHICIL UI COSI HUWICE BIOL LIVE CRICS HOVE UCCI move Required information Complete this question by entering your answers in the taps below. Terk Incorporated Statement Terry Statement Cash Flow Prepare an income statement. TERRY'S AUTO SHOP Income Statement For the Year Ended December 31, Year 2 Operating expenses $ 0 3 ok M.TICUSIC QUILUNIC SOLCHICIAL GRIM O SLOTCH COCO 4. IMSUITE VIOL CLOSING CUTS HAVE LO Que Required information Complete this question by entering your answers in the taus Delow. Terry Incorporated Statement Terry Statement Cash Flow Prepare a statement of cash flows. Note: Cash outflows should be indicated with a minus sign. TERRY'S AUTO SHOP Statement of Cash Flows For the Year Ended December 31, Year 2 nt Cash flow from operating activities int 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 < Terry Incorporated Statement Terry Statement Cash Flow >