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 either statement, and ending retained earnings must be calculated.) (Balance Sheet only: Items to be deducted must be indicated with a minus sign.)

Salaries Expense	$	87,000			Operating Expenses	$	80,000
Common Stock		100,000			Cash Flow from Investing Activities		96,400
Notes Receivable (short term)		42,000			Prepaid Rent		14,300
Allowance for Doubtful Accounts		9,600			Land		58,000
Uncollectible Accounts Expense		9,900			Cash		49,900
Supplies		3,000			Inventory		100,100
Interest Revenue		7,200			Accounts Payable		64,000
Sales Revenue		392,000			Salaries Payable		30,000
Dividends		5,300			Cost of Goods Sold		166,000
Interest Receivable (short term)		3,300			Accounts Receivable		74,000
Beginning Retained Earnings		90,000

SHERMAN EQUIPMENT CO. Income Statement For the Year Ending December 31, Year 2 Operating Expenses Total Operating Expenses Non-Operating Items Balance Sheet As of December 31, Year 2 Assets Total assets Liabilities and Stockholders' Equity Current Liabilities Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity