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 elther statement, and ending retained earnings must be calculated.) (Balance Sheet only: Items to be deducted must be indicated with a minus sign.) 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 Sales revenue Cost of goods sold Gross profit Operating Expenses Salaries expense Uncollectible accounts expense Total Operating Expenses Operating income Non-Operating Items Interest revenue SHERMAN EQUIPMENT CO. Income Statement For the Year Ending December 31, Year 2 $ Net income Answer is not complete. 33 3 >> 3 3 $ 75,000 Operating Expenses 100,000 Cash Flow from Investing Activities 38,808 Prepaid Rent 8,400 Land 8,700 Cash >> $ 1,800 Inventory 6,888 Accounts Payable Cost of Goods Sold 344,000 Salaries Payable 4,108 2,100 Accounts Receivable 84,000 75,000 >> 8,700 344,000 154,000 190,000 (83,700) 106,300 $ 6,000 112,300 $ 68,000 84,400 13,100 46,000 48,700 98,900 52,000 18,000 154,000 62,000 Assets Interest receivable Prepaid rent Supplies Land Cash Accounts receivable Less: Allowance for doubtful accounts Notes receivable Total assets Current Liabilities Accounts payable Salaries payable Answer is not complete. Total Liabilities Stockholders' Equity Common stock Retained earnings SHERMAN EQUIPMENT CO. Balance Sheet As of December 31, Year 2 333 334 33 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity IS 62,000 $ 48,700 62,000 30,000 2,100 13,100 1,800 46,000 $ 52,000 18,000 $ 100,000 84,000 * |$ 203,700 $ 70,000 184,000 |$ 254.000