The following list of accounts was drawn for Tile, Etc., Inc. on December 31, Year 1, after the closing entries were posted: Account Title Cash $135,000 2:57:58 Accounts receivable 130,000 Allowance for doubtful accounts 20,500 Inventory 435,000 Accounts payable 100,000 ook Common stock 475,000 Retained earnings 104,500 rint rences Tile, Etc. had the following transactions in Year 2: 1. Purchased merchandise on account for $605,000. 2. Sold merchandise that cost $445,000 for $940,000 on account. 3. Sold for $270,000 cash merchandise that had cost $170,000. 4. Sold merchandise for $215,000 to credit card customers. The merchandise had cost $106,000. The credit card company charges a 3 percent fee. 5. Collected $670,000 cash from accounts receivable. 6. Paid $635,000 cash on accounts payable. 7. Paid $150,000 cash for selling and administrative expenses. 8. Collected cash for the full amount due from the credit card company (see item 4). 9. Loaned $85,000 to J. Parks. The note had an 6 percent interest rate and a one-year term to maturity 10. Wrote off $8,000 of accounts as uncollectible. 11. Made the following adjusting entries: (a) Recorded uncollectible accounts expense estimated at 1 percent of sales on account. (b) Recorded seven months of accrued interest on the note at December 31, Year 2 (see item 9). Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for Year 2. Organize the transaction data in accounts under an accounting equation. (Do not round your intermediate calculation and round your final answer to the nearest wh with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.) TILE, ETC., INC. Horizontal Statements Model Assets Liabilities Equity Event Cash NRV Accounts Receivable Merchandise Notes Interest Inventory Receivable Receivable Accounts Payable Common Stock Retained Account Titles for Retained Earnings Earnings Bal 1 2a. 2b. 3a. 36 . . + 4a 4a + + 4b. 5. 6. 7 8. 9. 10. 11a. 11b . + . . . INNO 1 + " " Prepare an income statement for Year 2. (Do not round your intermediate calculation and round your final answer to the nearest whole dollar.) TILE, ETC., INC. Income Statement For the Year Ended December 31, Year 2 Operating expenses Total operating expenses Add: Non-operating items) Prepare a statement of changes in stockholders' equity for Year 2. (Do not round your intermediate calculation and round your final answer to the nearest whole dollar.) TILE, ETC., INC. 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 Assets Total assets Liabilities Total liabilities Stockholders' equity TILE, ETC., INC. Balance Sheet As of December 31, Year 2 Total stockholders' equity Total liabilities and stockholders' equity riepare a statement UI CASI HUWS UI Teal 2. (Casil CULHOWS SHQUI DE Indicated WILII d TILE, ETC., INC. 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 Net cash flow from investing activities Cash flows from financing activities Net change in cash Ending cash balance +