Presented below is information related to Dickinson Company for 2012.
Retained earnings balance, January 1, 2012 $982,900
Sales for the year 26,323,600
Cost of goods sold 16,187,900
Interest revenue 71,800
Selling and administrative expenses 4,736,300
Write-off of goodwill (not tax deductible) 835,300
Income taxes for 2012 1,204,100
Gain on the sale of investments (normal recurring) 116,000
Loss due to flood damage’extraordinary item (net of tax) 392,400
Loss on the disposition of the wholesale division (net of tax) 458,100
Loss on operations of the wholesale division (net of tax) 96,900
Dividends declared on common stock 257,000
Dividends declared on preferred stock 85,000
Prepare a multiple-step income statement and a retained earnings statement. 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 2012, there were 500,000 shares of common stock outstanding all year.