The following list of accounts was drawn from the accounts of Little Grocery Supplier $($LGS$)$ as of December $31,$ Year $1$: Complete this question by entering your answers in the tabs below.

Prepare a statement of changes in stockholders' equity for Year $2.$

Note: Enter all final answers in whole dollars. Enter cash outflows with a minus sign. Prepare a balance sheet for Year $2.$

Note: 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 $2$ Prepare a statement of cash flows for Year $2.$

Note: Enter cash outflows with a minus sign. Enter all final answers in whole dolla

Cash $$5,170$

Accounts receivable $19,665$

Allowance for doubtful accounts $$1,825$

Inventory $23,990$

Accounts payable $9,625$

Common stock $19,900$

Retained earnings $17,475$

Transactions for Year $2$:

Acquired an additional $$9,700$ cash from the issue of common stock.

Purchased $$60,900$ of inventory on account.

Sold inventory that cost $$63,700$ for $$96,700.$ Sales were made on account.

The company wrote off $$950$ of uncollectible accounts.

On September $1,$ LGS loaned $$9,500$ to Eden Company The note had an $7$ percent interest rate and a one$-$year term.

Paid $$14,030$ cash for operating expenses.

The company collected $$73,920$ cash from accounts receivable.

A cash payment of $$50,950$ was paid on accounts payable.

The company paid a $$5,400$ cash dividend to the stockholders.

Uncollectible accounts are estimated to be $1$ percent of sales on account.

Recorded the accrued interest at December $31,$ Year $2($see item $5).$

Required

Organize the transaction data in accounts under an accounting equation.

Prepare an income statement, a statement of changes in stockholders$$ equity, a balance sheet, and a statement of cash flows for Year $2.$Complete this question by entering your answers in the tabs below.

ReqA

Req B Income

Req B

Req B Balance Sheet

Req B

Statement of

Changes

Statement

Statement

Cash Flows

Prepare an income statement for Year $2.$

Note: Enter all final answers in whole dollars.

LITTLE GROCERY SUPPLIER $($LGS$)$

Income Statement

For the Year Ended December $31,$ Year $2$