(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 7.600 1600 7100 2,300 During Year 2. the company experienced the following events 1. Purchased inventory that cost $5,100 on account from Ross Company under terms 2/10, n/30 The merchandise was delivered FOB shipping point Transportation costs of $460 were paid in cash 2. Returned $300 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 $5,600 for $8.600 on account under terms 2/10/45 5. Received merchandise returned from a customer. The merchandise originally cost $460 and was sold to the customer for $760 cash. The customer was paid $700 cash for the returned merchandise 6. Delivered goods FOB destination in Event 4. Transportation costs of $560 were peid in cash 7. Collected the amount due on the account receivable within the discount period, B. Took a physical count indicating that $1.300 of inventory was on hand at the end of the accounting period. Complete this question by entering your answers in the tabs below. Req C1 Req C2 Req C3 Req C4 Prepare a multistep income statement. REDD COMPANY Income Statement For the Year Ended December 31, Year 2 Operating expenses Complete this question by entering your answers in the tabs below. Req C1 Req C2 Req 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 Plus: Stock issued Ending common stock Beginning retained earnings $ 0 Ending retained earnings 0 Total stockholders' equity $ 0 Req C1 Req C2 Req C3 Req C4 Prepare a balance sheet. Assets REDD COMPANY Balance Sheet As of December 31, Year 2 Total assets Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity $ 69 $ 0 $ 0 0 Req C1 Req C2 Req C3 Req C4 Prepare a statement of cash flows. Note: Enter cash outflows with a minus sign. 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 $ 0 0 $ 0