P4-1 (Multiple-Step Income, Retained Earnings) The following information is related to Dickinson

57Company for 2014.

Retained earnings balance, January 1, 2014 $ $80,000

Sales revenue $25,000,000

Cost of goods sold $16,000,000

Interest revenue $70,000

Selling and administrative expenses $4,700,000

Write-off of goodwill $820,000

Income taxes for 2014 $1,244,000

Gain on the sale of investments (normal recurring) $110,000

Loss due to flood damage