Also, prepare a retained earnings statement. The following information is relate

Question

Also, prepare a retained earnings statement.

The following information is related to Dickinson Company for 2014 Retained earnings balance, January 1, 2014 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2014 Gain on the sale of investments (normal recurring) Loss due to flood damage-extraordinary item (net of tax) Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $998,100 26,256,000 16,293,000 74,400 4,762,000 823,600 1,413,000 118,100 396,300 443,000 98,100 260,500 84,800 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 497,900 shares of common stock outstanding all year. Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.48.) DICKINSON COMPANY Income Statement For the Year Ended December 31, 2014

Explanation / Answer

Part A)

__________

Part B)

Dickinson Company Multi-Step Income Statement For the Year 2014 Revenues: Sales 26,256,000 Less Cost of Goods Sold 16,293,000 Gross Profit 9,963,000 Expenses: Selling and Administrative Expenses 4,762,000 Income from Operations 5,201,000 Other Revenue and Expenses: Interest Revenue 74,400 Write-off of Goodwill -823,600 Gains on Sale of Investment 118,100 Total Revenues and Other Expenses -631,100 Income from Continuing Operations before Income Taxes 4,569,900 Income Tax Expense -1,413,000 Income from Continuing Operation 3,156,900 Discontinued Operation: Loss on the Disposition of the Wholesale Division -443,000 Loss on Operations of the Wholesale Division -98,100 Tota Loss from Discontinued Operations -541,100 Income Before Extraordinary Items 2,615,800 Loss due to Flood Damage – Extraordinary Item (Net of Tax) -396,300 Net Income $2,219,500

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