Use the following information to prepare 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.)

Salaries Expense	$	79,000			Operating Expenses	$	72,000
Common Stock		100,000			Cash Flow from Investing Activities		88,400
Notes Receivable (short term)		34,000			Prepaid Rent		13,500
Allowance for Doubtful Accounts		8,800			Land		50,000
Uncollectible Accounts Expense		9,100			Cash		49,100
Supplies		2,200			Inventory		99,300
Interest Revenue		6,400			Accounts Payable		56,000
Sales Revenue		360,000			Salaries Payable		22,000
Dividends		4,500			Cost of Goods Sold		158,000
Interest Receivable (short term)		2,500			Accounts Receivable		66,000
Beginning Retained Earnings		86,000

SHERMAN EQUIPMENT CO. Income Statement For the Year Ending December 31, Year 2 Operating Expenses Total Operating Expenses Non-Operating Items SHERMAN EQUIPMENT CO. Balance Sheet As of December 31, Year 2 Assets Total assets Liabilities and Stockholders' Equity Current Liabilities Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity