Use the tollowing intormation to prepare a multi-step income statement and a balance sheet tor 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.) 71,000 Operating Expenses 100,000 Cash Flow from Investing Activities 26,000 Prepaid Rent 64,000 80,400 12,700 42,000 48,300 98,500 48,000 14,000 150,000 58,000 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 8,000 Land 8,300 Cash 1,400 Inventory 5,600 Accounts Payable 328,000 Salaries Payable 3,700 Cost of Goods Sold 1,700 Accounts Receivable 82,000 SHERMAN EQUIPMENT CO Income Statement For the Year Ending December 31, Year 2 Sales revenue nterest revenue Gross profit Operating Expenses $328,000 5,600 322,400 $150,000 14,000 8,300 64,000 Cost of goods sold Salaries expense Uncollectible accounts expense Operating expenses Total Operating Expenses Operating income Non-Operating Items (236,300) 86,100 $ 86,100 SHERMAN EQUIPMENT CO Balance Sheet As of December 31, Year 2 Assets Cash Cash Total assets Liabilities and Stockholders' Equity Current Liabilities Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity