Reference no: EM131808671

Problem - The following information is related to Dickinson Company's 2014 operations: R/E 1/1/2014$ 1,243,000Sales revenue$ 35,470,000Cost of Goods sold$ 19,508,500Interest revenue$ 65,000Selling & administrative expenses$ 10,641,000Interest Expense$ 75,000Loss on sale of machinery$ 12,000Unrealized loss on AFS investments net of tax$ 15,750Write-off of goodwill$ 250,000Income taxes for 2014 (Effective tax rate is 30%)$ 993,430Sales Returns & Allowances$ 13,130Sales Discounts$ 24,750Gain on Sale of investments$ 110,000Loss due to Katla volcano eruption$ 390,000Loss on disposition of the wholesale division$ 628,571Loss on operations of the wholesale division$ 128,571Dividends declared on common stock $ 625,000Dividends declared on preferred stock$ 500,000Average common shares outstanding 500,000Understated depreciation expense 2013 175,000Effective Tax Rate30%Dickinson Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2014, there were 500,000 shares of common stock outstanding all year.

Instructions: Prepare a multiple-step income statement and statement of retained earnings.