Use the following information to pr$$pare a multi$-$step income statement and a balance sheet for Sherman Equipment Co$.$ for Year $2.($Hint$.$ Some of the items will not appear on either statement, and ending retained earnings must be calculated.$)($Balance Sheet only: Items to be deducted must be indicated with a minus sign.$)$

$\backslash$table$[[$Salaries Expense,$$74,000,$Operating Expenses,$67,000],[$Common Stock,$100,000,$Cash Flow from Investing Activities,$83,400],[$Notes Receivable $($short term$),29,000,$Prepaid Rent,$13,000],[$Allowance for Doubtful Accounts,$8,300,$Land,$45,000],[$Uncollectible Accounts Expense,$8,600,$Cash,$48,600],[$Supplies$,1,700,$Inventory,$98,800],[$Interest Revenue,$5,900,$Accounts Payable,$17,000],[$Sales Revenue,$340,000,$Salaries Payable,$17,000],[$Dividends$,4,000,$Cost of Goods Sold,$153,000],[$Interest Receivable $($short term$),2,000,$Accounts Receivable,$61,000],[$Beginning Retained Earnings,$83,500,,]]$

$\backslash$table$[[$SHERMAN EQUIPMENT CO$.,],[$Income Statement,$],[$For the Year Ending December $31,$ Year $2,,],[$Cost of goods sold,,$$340,000$