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	$	76,000			Operating Expenses	$	69,000
Common Stock		100,000			Cash Flow from Investing Activities		85,400
Notes Receivable (short term)		31,000			Prepaid Rent		13,200
Allowance for Doubtful Accounts		8,500			Land		47,000
Uncollectible Accounts Expense		8,800			Cash		48,800
Supplies		1,900			Inventory		99,000
Interest Revenue		6,100			Accounts Payable		53,000
Sales Revenue		348,000			Salaries Payable		19,000
Dividends		4,200			Cost of Goods Sold		155,000
Interest Receivable (short term)		2,200			Accounts Receivable		63,000
Beginning Retained Earnings		84,500

SHERMAN EQUIPMENT CO.
Balance Sheet
As of December 31, Year 2
Assets
		0
Total assets			$0
Liabilities and Stockholders Equity
Current Liabilities
Total Liabilities			$0
Stockholders Equity
Total Stockholders Equity			0
Total Liabilities and Stockholders Equity			$0