The following list of accounts was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 1: Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $ 5,280 17,350 $ 1,940 25,430 9,875 18,300 17,945 Transactions for Year 2 1. Acquired an additional $11,800 cash from the issue of common stock. 2. Purchased $60,700 of inventory on account. 3. Sold inventory that cost $62,900 for $94,000. Sales were made on account. 4. The company wrote off $1,450 of uncollectible accounts. 5. On September 1, LGS loaned $10,500 to Eden Co. The note had an 8 percent interest rate and a one-year term. 6. Paid $15,900 cash for operating expenses. 7. The company collected $83,760 cash from accounts receivable. 8. A cash payment of $52,250 was paid on accounts payable. 9. The company paid a $5,700 cash dividend to the stockholders. 10. Uncollectible accounts are estimated to be 1 percent of sales on account. 11. Recorded the accrued interest at December 31, Year 2 (see item 5). 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 Prepare an income statement for Year 2. (Enter all final answers in whole dollars.) LITTLE GROCERY SUPPLIER (LGS) Income Statement For the Year Ended December 31, Year 2 Expenses Total expenses 0 Operating income 0 Prepare a statement of changes in stockholders' equity for Year 2. (Enter all final answers in whole dollars. Enter cash outflows with a minus sign.) LITTLE GROCERY SUPPLIER (LGS) Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock $ 0 Ending common stock Beginning retained earnings 0 Ending retained earnings Total stockholders' equity $ 0 Prepare a balance sheet for Year 2. (Be sure to list the assets in the order of their liquidity. Enter all final answers in whole dollars.) LITTLE GROCERY SUPPLIER (LGS) Balance Sheet As of December 31, Year 2 Assets 0 Total assets S 0 Liabilities 0 Total liabilities Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity S 0 Prepare a statement of cash flows for Year 2. (Enter cash outflows with a minus sign. Enter all final answers in whole dollars. LITTLE GROCERY SUPPLIER (LGS) Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities s Net cash flow from operating activities Cash flows from investing activities: 0 Net cash flow from investing activities Cash flows from financing activities 0 Net cash flows from financing activities Net change in cash 0 Ending cash balance 0