Use the following information to prepare a multistep income statement and a balance sheet for Sherman Equipment Company for Year 2. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.) These financial statements need to be hand written and uploaded as either a pdf or a Word document.

Salaries expense	$69,000	Operating expenses	$62,000
Common stock	100,000	Cash Flow from investing activities	78,400
Notes receivable (short term)	24,000	Prepaid rent	12,500
Allowance for doubtful accounts	7,800	Land	40,000
Uncollectible accounts expense	8,100	Cash	48,100
Supplies	1,200	Inventory	98,300
Interest revenue	5,400	Accounts payable	46,000
Sales revenue	320,000	Salaries payable	12,000
Dividends	3,500	Cost of goods sold	148,000
Interest receivable (short term)	1,500	Accounts receivable	56,000
Beginning retained earnings	81,000