Jackson Company had the following income statement amounts for the year ended December 31, 2007:
Sales.........................................................$4,624,274
Cash dividends declared.............................$ 58,986
Income tax expense......................................405,107
Interest income...............................................23,088
S, G &A Expense.........................................684,175
Cost of sales..............................................2,958,708
Other expense..................................................6,317
Retained earnings, 12/31/07.....................3,074,037
Royalty income...........................................279,459
Royalty expense..........................................111,586
Prepare a combined single-step income statement and retained earnings for the year ended December 31, 2007.