Problem:
Prepare a multiple step income statemetn and a retained earnings statement foDickinson Company decided to discountinue its enture whorlesale operations and the retain its manufacturing operations. On September 15, Dickenson sold the wholesale operations to Rogers Company. Durng 2012, there were 500,000 shares of common stock oustanding all years.
- Retained earnings balance Jan 1, 2012 : 980,000
- Sales Revenue : 25,000,000
- Cost of Goods Solf 16,000,000
- Interest Revenue 70,000
- Selling and Admin 4,700,000
- Write off od Goodwill 820,00
- Income taxes for 2012 1,244,000
- Gain on sale of investment (normal recurring) 110,000
- Loss due to flood (extradoniry item (net of tax: 390,000
- Loss of disposition of the wholesale division (net of tax) 440,000
- Loss o operations of the wholesale division (net of tax) 90,000
- Dividends declared on common stock 250,000
- Dividends declads on preferred stock 80,000
Note: Provide support for your rationale.