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 $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

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 Notes receivable (short term) Allowance for doubtful accounts Uncollectible accounts expense Supplies Interest revenue Sales revenue Dividends Interest receivable (short term) Beginning retained earnings $69,000 100,000 24,000 7,800 8,100 1,200 5,400 320,000 3,500 1,500 81,000 Operating expenses Cash Flow from investing activities Prepaid rent Land Cash Inventory Accounts payable Salaries payable Cost of goods sold Accounts receivable $62,000 78,400 12,500 40,000 48, 100 98,300 46,000 12,000 148,000 56,000 Complete this question by entering your answers in the tabs below. Req A1 Req A2 Prepare a multistep income statement for Sherman Equipment Company for Year 2. SHERMAN EQUIPMENT COMPANY Income Statement For the Year Ending December 31, Year 2