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Required Information

Problem $3-26$A $($Algo$)$ Comprehensive cycle problem: Perpetual system LO $3-2,3-3,3-4,3-5,3-6,3-7$

$[$The following information applles to the questions displayed below.$]$

At the beginning of Year $2,$ the Redd Company had the following balances in its accounts:

$\backslash$table$[[$Cash$,$$$7,500$se a horizontal financlal statements model to show how each event affects the balance sheet, income statement, and statement of $n$ flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify cash flows as operating activities $($OA$),$ Investing activities $($IA$),$ or financing activities $($FA$).$

e: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no Input is needed.

REDD COMPANY

Horizontal Statements Model $-$ Year $2$

c$-1.$ Prepare a multistep income statement.

c$-2.$ Prepare a statement of changes in stockholders' equity.

c$-3.$ Prepare a balance sheet.

$c-4.$ Prepare a statement of cash flows.

Complete this question by entering your answers in the tabs below.

Req C$1$

Req C$4$

Prepare a multistep income statement.

$\backslash$table$[[$REDD COMPANY$],[$For the Year Ended December $31,$ Year $2,],[,],[,],[,],[$Operating expenses,$],[,],[,]]$