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 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 $ 86,898 Operating Expenses 188,888 Cash Flow from Investing Activities 41,090 Prepaid Rent 9,580 Land 9.800 Cash 2,989 Inventory 7,189 Accounts Payable 388,080 Salaries Payable 5,280 Cost of Goods Sold 3,280 Accounts Receivable 89,500 $ 79,000 95,480 14,280 57,000 49,800 180,089 63,880 29,000 165,000 73,000 SHERMAN EQUIPMENT CO. Income Statement For the Year Ending December 31, Year 2 Operating Expenses Total Operating Expenses Non-Operating Items SHERMAN EQUIPMENT CO. Balance Sheet As of December 31, Year 2 Assets PEN Total assets Liabilities and Stockholders' Equity Current Liabilities Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity