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Use the following information to prepare a multi-step income statement and a balance sheet for Sherman Equipment Co. (Hint Some of the items will not appear on either statement, and ending retained earnings must be calculated.) (Balance Items to be deducted must be indicated with a minus sign.) Salaries Expense Common Stock Notes Receivable (short term) Allowance for Doubtful Accounts Uncollectible Accounts Expense Supplies Interest Revenue Sales Revenue Dividends Interest Receivable (short term) Beginning Retained Earnings $ 76,000 Operating Expenses 100,000 Cash Flow from Investing Activities 31,000 Prepaid Rent 8,500 Land 8,800 Cash 1,900 Inventory 6,100 Accounts Payable 348,000 Salaries Payable 4,200 Cost of Goods Sold 2,200 Accounts Receivable 84,500 $ 69,000 85,400 13,200 47,000 48,800 99,000 53,000 19,000 155,000 63,000 Balance Sheet As of December 31, Year 2 Assets $ 48,800 $ 63,000 Cash Accounts receivable Less: Allowance for doubtful accounts Notes receivable Interest receivable Prepaid rent Supplies Land Inventory 63,000 31,000 2,200 13,200 1,900 47,000 99,000 Total assets $ 306,100 Liabilities and Stockholders' Equity Current Liabilities Accounts payable Salaries payable $ 53,000 19,000 $ 72,000 Total Liabilities Stockholders' Equity Common stock Retained earnings $ 100,000 125,600 Supplies Land 1,900 47,000 99,000 Inventory Total assets $ 306,100 Liabilities and Stockholders' Equity Current Liabilities Accounts payable Salaries payable $ 53,000 19,000 Total Liabilities $ 72,000 Stockholders' Equity Common stock Retained earnings $ 100,000 125,600 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 225,64 $ 297,600