Use the following information to prepare a multistep income statement and a balance sheet for Sherman Equipment Company for Year 2. (Hint. Some ofthe items will notappear on either statement. and ending retained earnings must be calculated.) Salaries expense $85,000 Operating expenses $78,000 Common stock 100,000 Cash Flow from investing activities 94,400 Notes receivable (short term) 40,000 Prepaid rent 14,100 Allowance for doubtful accounts 9,400 Land 56,000 Uncollectible accounts expense 9,700 Cash 49.700 Supplies 2,800 Inventory 99,900 Interest revenue 7,000 Accounts payable 62.000 Sales revenue 384,000 Salaries payable 28,000 Dividends 5,100 Cost of goods sold 164,000 Interest receivable (short term) 3,100 Accounts receivable 72,000 Beginning retained earnings 89,000 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. Req Al 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 0 Operating Expenses Total Operating Expenses O O Non-Operating Items 0Req A1 Req A2 Prepare a balance sheet for Sherman Equipment Company for Year 2. (Enter amounts to be deducted with a minus sign.) SHERMAN EQUIPMENT COMPANY Balance Sheet As of December 31, Year 2 Assets 0 Total assets 0