Prepare an Income Statement, a Balance sheet and a Retained Earnings Statement based on this data: Income Statement data: Advertising Expense. 125,000 Cost of Merchandise Sold. 3,650,000 Delivery Expense. 29,000 Depreciation Expense- Office Building and Equipment. 26,000 Depreciation expense- Store Building and Equipment. 95,000 Dividend Revenue . 3,575 Gain on Sale of Investment . 2,225 Income from Lifecare Co. Investment . 65,600 Income Tax. 128,500 Interest Expense . 19,000 Interest Revenue. 1,800 Miscellaneous Administrative Expense. 7,500 Miscellaneous Selling Expense.13,750 Office Rent Expense.50,000 Office Supplies Expense . 10,000 Sales . 5,145,000 Sales Commissions . 182,000 Sales Salaries Expense .365,000 Store Supplies Expense . 22,000 Retained Earnings and balance sheet data:

Accounts Payable . 195,000 Accounts Receivable . 543,000 Accumulated depreciation- office building and equipment . 1,580,000 Accumulated depreciation- store building and equipment. 4,126,000 Allowance for doubtful accounts . 8,150 Available for sale Investment . 110, 250 Bonds Payable, 6% 2022 . 400,000 Cash . 240,000 Common stock, $25 par (400,000 shares authorized; 85, 570 shares issued 82,670 shares outstanding) . 2,164,250 Dividends: Cash dividends for common stock . 155,120 Cash dividends for preferred stock . 85,000 Stock dividends for common stock . 62,800 Goodwill . 510,000 Income tax payable . 40,000 Interest Receivable . 930,000 Investment in Lifecare Co. stock . 689,100 Investment in Nordic Wear Inc bonds . 62,000 Merchandise inventory (December 31, 2012) at lower of cost (FIFO) or market . 780,000 Office Building and equipment . 4,320,000

Paid in capital from sale of treasury stock . 18,200 Paid in capital in excess of par- common stock . 842,000 Paid in capital in excess of par- preferred stock . 150,000 Preferred 5% stock, $100 par (3,000 shares authorized; 17,000 shares issued) .1,700,000 Premium on bonds payable . 19,000 Prepaid expenses . 26,500 Retained earnings, January 1, 2012 . 8,705,150 Store buildings and equipment . 12,560,000 Treasury common stock (3,900 shares of common stock at cost of $35 per share) . 136,500 Unrealized gain (loss) on available- for- sale investments . 17,750 Valuation allowance for available- for sale investments . -17,750