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 $ 71,000 Operating Expenses 188,888 Cash Flow from Investing Activities 26,880 Prepaid Rent 8,888 Land 8,388 Cash 1,488 Inventory 5,600 Accounts Payable 328,000 salaries Payable 3,700 cost of Goods Sold 1,700 Accounts Receivable 82,800 $ 64,000 80,480 12,780 42,000 48,300 98,500 48,888 14,000 150,000 58,888 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 Total assets Liabilities and Stockholders' Equity Current Liabilities Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity