(Multiple-step Statement with Retained Earnings) Presented below is information related to Ivan Calderon Corp. for the year 2004.
Net sales $1,300,000 Write-off of inventory due to obsolescence $ 80,000
Cost of goods sold 780,000 Depreciation expense omitted by accident in 2003 55,000
Selling expenses 65,000 Casualty loss (extraordinary item) before taxes 50,000
Administrative expenses 48,000 Dividends declared 45,000
Dividend revenue 20,000 Retained earnings at December 31, 2003 980,000
Interest revenue 7,000 Effective tax rate of 34% on all items
(a) Prepare a multiple-step income statement for 2004. Assume that 60,000 shares of common stock are outstanding.
(b) Prepare a separate retained earnings statement for 2004.