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	$77,000	Operating expenses	$70,000
Common stock	100,000	Cash Flow from investing activities	86,400
Notes receivable (short term)	32,000	Prepaid rent	13,300
Allowance for doubtful accounts	8,600	Land	48,000
Uncollectible accounts expense	8,900	Cash	48,900
Supplies	2,000	Inventory	99,100
Interest revenue	6,200	Accounts payable	54,000
Sales revenue	352,000	Salaries payable	20,000
Dividends	4,300	Cost of goods sold	156,000
Interest receivable (short term)	2,300	Accounts receivable	64,000
Beginning retained earnings	85,000

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 Liabilities and Stockholders' Equity Current Liabilities $ 0 Total Liabilities Stockholders' Equity 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 0 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 0 Operating Expenses Total Operating Expenses 0 0 Non-Operating Items $ 0 Req A1 Req A2 >