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 $7,880 1,800 7,300 2,300 During Year 2, the company experienced the following events: 1. Purchased inventory that cost $5,300 on account from Ross Company under terms 2/10, 1/30. The merchandise was delivered FOB shipping point. Transportation costs of $480 were paid in cash. 2. Returned $350 of the inventory it had purchased because the inventory was damaged in transit. The seller agreed to pay the return transportation cost. 3. Paid the amount due on its account payable to Ross Company within the cash discount period, 4. Sold inventory that had cost $5,800 for $8,800 on account, under terms 2/10,n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $480 and was sold to the customer for $780 cash. The customer was paid $780 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Transportation costs of $580 were paid in cash. 7. Collected the amount due on the account receivable within the discount period, 8. Took a physical count indicating that $1,500 of inventory was on hand at the end of the accounting period. S Score answer > Required information Complete this question by entering your answers in the tabs below. Read Req C2 Req C3 Req C4 Prepare a multistep income statement. REDD COMPANY Income Statement For the Year Ended December 31, Year 2 Net sales $ 8,800 Operating expenses RUG Reg C2 4 Required information 2 of 2 Complete this question by entering your answers in the tabs below. Reg C1 Reg C2 Reg C3 Req CA 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 $ 7,300 Plus: Stock issued Ending common stock $ 7.300 Beginning retained earnings $ 2,300 Plus: Net income 1,633 Ending retained earnings 3,933 $ 11,233 Total stockholders' equity