. Cost of Goods Sold: Retained Earnings Statement Balance Sheet Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $631,260 on January 1, 2012, when Sedbrook Company's retained earnings were $94,400. Preclosing trial balances for the two companies at December 31, 2016, are oresented here: The January 1, 2016, inventory of Sedbrook Company includes $24,900 of profit recorded by Pruitt Corporation on 2015 sales. During 2016, Pruitt Corporation made intercompany sales of $249,200 with a markup of 20% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2016 from Pruitt for $59,400. (a) Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that increase retained earnings . Cost of Goods Sold: Retained Earnings Statement Balance Sheet Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $631,260 on January 1, 2012, when Sedbrook Company's retained earnings were $94,400. Preclosing trial balances for the two companies at December 31, 2016, are oresented here: The January 1, 2016, inventory of Sedbrook Company includes $24,900 of profit recorded by Pruitt Corporation on 2015 sales. During 2016, Pruitt Corporation made intercompany sales of $249,200 with a markup of 20% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2016 from Pruitt for $59,400. (a) Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that increase retained earnings