[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 $ 8,300 2,300 7,800 2,800 During Year 2, the company experienced the following events: M. Purchased inventory that cost $5,800 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $530 were paid in cash. 2. Returned $300 of the inventory that it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost. 3. Paid the amount due on its account payable to Ross Company within the cash discount period. 4. Sold inventory that had cost $6,300 for $9,300 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $530 and was sold to the customer for $830 cash. The customer was paid $830 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $630 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Took a physical count indicating that $2,000 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. > Answer is not complete. 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 Net sales Cost of goods sold Gross margin Operating expenses $ 8,548 6,040 x 2,508 x Complete this question by entering your answers in the tabs below. of 2 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 Plus: Net income 0 $ 0 Ending retained earnings Total stockholders' equity 0 0 < Req C1 Req C3 > 5 Part 2 of 2 Required information Complete this question by entering your answers in the tabs below. Req C1 Req C2 Req C3 Req C4 50 points Prepare a balance sheet.. REDD COMPANY Balance Sheet As of December 31, Year 2 Assets Cash Merchandise inventory Total assets Liabilities Stockholders' Equity Common stock Retained earnings $ 0 + Required information of 2 Req C1 Req C2 Req C3 Req C4 Prepare a statement of cash flows. Note: Cash outflows should be indicated with a minus sign. REDD COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities Inflow from customers Outflow for expenses Outflow for inventory Net cash flow from operating activities Cash flows from investing activities: Cash flows from financing activities: Net change in cash Plus: Beginning cash balance 0 0