Crane Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information:

Sales revenue		$1,230,000
Discontinued operations loss (net of tax)		65,100
Selling expenses		127,000
Cash		59,400
Accounts receivable		88,600
Common stock		200,000
Cost of goods sold		696,500
Accumulated depreciation-machinery		177,600
Dividend revenue		8,700
Unearned service revenue		4,100
Interest payable		1,800
Land		368,000
Patents		118,000
Retained earnings, January 1, 2020		269,030
Interest expense		19,100
Administrative expenses		174,200
Dividends declared		22,400
Allowance for doubtful accounts		4,700
Notes payable (maturity 7/1/23)		204,000
Machinery		444,000
Materials		40,200
Accounts payable		56,000

The amount of income taxes was $66,570, excluding the tax effect of the discontinued operations loss which amounted to $27,900.

1) Prepare a multiple-step income statement.

2)Prepare a retained earnings statement. (List items that increase retained earnings first.)