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.) Salaries expense Common stock $70,000 100,000 Operating expenses Cash Flow from investing activities Notes receivable (short term) Allowance for doubtful accounts Uncollectible accounts expense Supplies 25,000 Prepaid rent 7,900 Land: 8,200 Cash 1,300 Inventory Interest revenue 5,500 Accounts payable Sales revenue 324,000 Salaries payable Dividends 3,600 Cost of goods sold: Interest receivable (short term) 1,600 Accounts receivable Beginning retained earnings 81,500 $63,000 79,400 12,600 41,000 48,200 98,400 47,000 13,000 149,000 57,000 SHERMAN EQUIPMENT COMPANY Income Statement For the Year Ending December 31, Year 2 Operating Expenses Total Operating Expenses Non-Operating Items EA $ 0 0 0 0 Assets Total assets Current Liabilities Total Liabilities Stockholders' Equity Balance Sheet As of December 31, Year 2 0 $ 0 Liabilities and Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity S 0 0 $ 0