(Multiple-step Statement with Retained Earnings) Presented below is information related to Brokaw Corp. for the year 2010. Net sales $1,200,000 Write-off inventory due to obsolescence $80,000 Cost of goods sold 780,000 Depr exp omitted by accident in 2009 40,000 Selling expenses 65,000 Casualty loss (extraordinary exp) before taxes 50,000 Administrative expenses 48,000 Dividends declared 45,000 Dividend revenue 20,000 Ret earnings at December 31, 2009 980,000 Interest revenue 7,000 Effective tax rate of 34% on all items (a) Prepare a multiple-step income statement for 2010. Assume that 60,000 shares of common stock are outstanding. (Round per share common stock to 2 decimal places, e.g. 5.25 and all other answers to zero decimal places, e.g. 2,250. For per share common stock use either a negative sign preceding the number, e.g. 0.45 or parenthesis, e.g. (0.45) for negative numbers. Enter all other amounts as positive amounts and subtract where necessary. List multiple entries from largest to smallest amount, e.g. 10, 5, 2.) BROKAW CORP. Income Statement For the Year Ended December 31, 2010 Sales Revenue: ______________________ $___________________ _______________________ ____________________ Gross Profit ___________________ Operating Expenses: __________________ $__________________ __________________ __________________ ___________________ Income from Operations ___________________ Other Revenues and Gains: __________________ __________________ __________________ __________________ ___________________ ___________________ Other Expenses and Losses: ___________________ ____________________ Income before taxes and extraordinary items _____________________ ____________________ ____________________ Income before extraordinary item _____________________ Extraordinary Item ____________________ ___________________ Less: ___________________ ___________________ ____________________ Net Income $ ___________________ Per Share of Common Stock: Income before extraordinary item $____________________ Extraordinary item, net of tax ____________________ Net Income $___________________ (b) Prepare a separate retained earnings statement for 2010. (Enter all amounts as positive amounts and subtract where necessary.) BROKAW CORP. Retained Earnings Statement For the Year Ended December 31, 2010 ____________________________ $_______________________ ____________________________ _______________________ Retained earnings, Jan 1, as adjusted _______________________ Add: ______________________________ _______________________ _______________________ Less: ______________________________ ________________________ Retained Earnings, Dec 31 $_______________________