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: The following events affected the company during the Year 2 accounting perlod: 1. Purchased merchandise on account that cost $15,000. 2 The goods in Event 1 were purchased FOB shipping point with freight cost of $800 cash. 3. Returned $2,600 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandlse for which the company recelved a $1,100 allowance. 5. Sold merchandise that cost $15,000 for $31,000cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $500 cach. 7. Pald $8,000 on the merchandise purchased in Event 1 . Prepare an Income statement and a statement of cash flows for Year 2 (Assume that closing entrles have been made.) Complete this question by entering your answers in the tabs below. Prepare a statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)