Porter Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2017 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue Discontinued operations loss (net of tax) 63,000 Selling expenses 128,000 Cash 60,000 Accounts receivable 90,000 Common stock 200,000 Cost of goods sold 700,000 Accumulated depreciation-machinery 180,000 Dividend revenue 8,000 Unearned service revenue 4,400 Interest payable 1 ,ooo Land 370,000 Patents 100,000 Retained earnings, January 1, 2017 270,000 Interest expense 17,000 Administrative expenses 170,000 Dividends declared 24,000 Allowance for doubtful accounts 5,000 Notes payable (maturity 7/1/20) 200,000 Machinery 450,000 Materials 40,000 Accounts payable 60,000 The amount of income taxes applicable to income was $72,900, excluding the tax effect of the discontinued operations loss which amounted to $27,000. Instructions (a) Prepare a multiple-step income statement. (b) Prepare a retained earnings statement.