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 $ 8,000 Inventory 2,000 Common stock 7,500 Retained earnings 2,500 During Year 2, the company experienced the following events Purchased inventory that cost $5,500 on account from Ross Company under terms 2 10, n 30 The merchandise was delivered FOB shipping point Freight costs of $500 were paid in cash Returned $350 of the inventory 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 Ross Company within the cash discount period Sold inventory that had cost $6,000 for $9,000 on account, under terms 2 10, n 45 Received merchandise returned from a customer The merchandise originally cost $500 and was sold to the customer for $800 cash The customer was paid $800 cash for the returned merchandise Delivered goods FOB destination in Event 4 Freight costs of $600 were paid in cash Collected the amount due on the account receivable within the discount period Took a physical count indicating that $1,700 of inventory was on hand at the end of the accounting period 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 Reg C1 Reg C2 Reg C3 Req C4 Prepare a multistep income statement REDD COMPANY Income Statement For the Year Ended December 31, Year 2 Operating expenses Reg C1 Reg C2 Reg C3 Req C4 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 Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity Complete this question by entering your answers in the tabs below Reg C1 Req c2 Reg C3 Req C4 Prepare a balance sheet REDD COMPANY Balance Sheet As of December 31, Year 2 Assets Total assets Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Req C1 Reg C2 Reg C3 Reg C4 Prepare a statement of cash flows (Enter cash outflows as negative amounts ) REDD COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows 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

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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

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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	$	8,000
Inventory		2,000
Common stock		7,500
Retained earnings		2,500

During Year 2, the company experienced the following events:

Purchased inventory that cost $5,500 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $500 were paid in cash.
Returned $350 of the inventory 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 Ross Company within the cash discount period.
Sold inventory that had cost $6,000 for $9,000 on account, under terms 2/10, n/45.
Received merchandise returned from a customer. The merchandise originally cost $500 and was sold to the customer for $800 cash. The customer was paid $800 cash for the returned merchandise.
Delivered goods FOB destination in Event 4. Freight costs of $600 were paid in cash.
Collected the amount due on the account receivable within the discount period.
Took a physical count indicating that $1,700 of inventory was on hand at the end of the accounting period.

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.

Reg C1 Reg C2 Reg C3 Req C4 Prepare a multistep income statement. REDD COMPANY Income Statement For the Year Ended December 31, Year 2 Operating expenses Reg C1 Reg C2 Reg C3 Req C4 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 Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity Complete this question by entering your answers in the tabs below. Reg C1 Req c2 Reg C3 Req C4 Prepare a balance sheet. REDD COMPANY Balance Sheet As of December 31, Year 2 Assets Total assets Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Req C1 Reg C2 Reg C3 Reg C4 Prepare a statement of cash flows. (Enter cash outflows as negative amounts.) REDD COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows 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