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.) Operating expenses Salaries expense Common stock $74,000 100,000 Notes receivable (short term) 29,000 Cash Flow from investing activities Prepaid rent Allowance for doubtful accounts 8,300 Land Uncollectible accounts expense Supplies 8,600 Cash 1,700 Interest revenue 5,900 Sales revenue 340,000 Inventory Accounts payable Salaries payable Dividends 4,000 Cost of goods sold Interest receivable (short term) 2,000 Accounts receivable Beginning retained earnings 83,500 $67,000 83,400 13,000 45,000 48,600 98,800 51,000 17,000 153,000 61,000