1 Fly-by-Night Distributing (FBND) elected to discontinue all operations east of the Mississippi River in 2020 2 3 The following represents operating data for both the West and East divisions prior to the sale of the East Division's assets on 8/31/2020 5 West East 6 Sales revenue 6,800,000 4,300,000 Cost of goods sold 4,000,000 3,000,000 8 Other operating expenses 2,200,000 1,160,000 9 Interest expense on equipment loans for that division 120,000 60,000 0 1 The following data represent FBND's investment, book values, and sales prices for the East Division's 2 assets sold on 8/31/2020 3 14 Assets at cost 6,000,000 5 Accumulated depreciation 5,300.000 6 Sales price 600,000 UN On January 30, 2021 it was found that $300,000 in West Division other operating expenses had not been included in the 2019 income statement. 8 9 50 51 FBND started 2020 with a reported retained earnings balance of $480,000. 53 The tax rate for 2019 & 2020 was 21% 34 55 FBND had 20,000 shares of preferred stock outstanding and paid a $1.25 per share dividend. 36 37 FBND had 100,000 shares of common stock outstanding and paid a $0.80 per share dividend. 38 39 Your task is to: complete FBND's 2020's income statement with earnings per share and statement of 20 retained earning in the IS & RE worksheet in good form. FBND is 12/31 year end company. 21