(Multiple-step Statement with Retained Earnings) Presented below is information related to Ivan Calderon Corp. for the year 2004.

Instructions

(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.

Transcribed Image Text:

Net sales Cost of goods sold Selling expenses $1,300,000 780,000 65,000 Administrative expenses 48,000 Dividend revenue 20,000 Write-off of inventory due to obsolescence Depreciation expense omitted by accident in 2003 Casualty loss (extraordinary item) before taxes Dividends declared Retained earnings at December 31, 2003 Interest revenue 7,000 Effective tax rate of 34% on all items $ 80,000 55,000 50,000 45,000 980,000