PARETI (40 points) The Arlen Company prep Retained Earnings for the vear ended December 31, 2017 information pertaining to these statements appears on ared the following Income Statement and Statement of . (Additional pages 8-10.) ARLEN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales Cost of Goods Sold Gross Margin Selling and Administrative Expenses Income from Operations Other Gains and Losses: $ 8,200,000 3.400.000 $ 4,800,000 2,800,000 Gain from Sale of Investments Loss from Discontinued Segment 300,000 900,000 600,000 $2,200,000 Net Income before taxes Income Taxes (40%) Income from continuing operations, after taxes Extraordinary Items $1,320,000 Gain from Sale of Land, less applicable $ 360,000 income taxes, $240,000 Loss on obsolete inventory, less applicable income taxes, $112,000 192,000 $ 1,512,000 Income before cumulative effect of changes Cumulative Effect of Change Change in bad debt percentage, less applicable $48,000 income taxes, $32,000 36,000 84,000 S 1428.000 Change in inventory method, less applicable Income taxes, $24,000 Net Income