Presented below are the amounts of assets and liabilities of Arnold Corp. as of December 31, 2018, and revenues and expenses of the company for the year ended on that date.

Sales $ 18,000,000

Cost of Goods Sold $ 13,500,000

Wages Expense $ 2,700,000

Common Stock $ 2,250,000

Cash $ 2,059,650

Building $ 1,350,000

Mortgage Payable - Long Term $ 1,012,500

Notes Payable - Long Term $ 675,000

Marketing Expense $ 607,500

Accounts Receivable $ 517,500

Equipment $ 450,000

Accounts Payable $ 427,500

Income Tax Expense $ 405,000

Wages Payable $ 382,500

Dividends $ 337,500

Inventory $ 270,000

Land $ 225,000

Accumulated Depreciation $ 202,500

Utilities Expense $ 162,000

Rent Expense $ 112,500

Short-term Investments $ 112,500

Depreciation Expense $ 78,750

Retained Earnings Balance 12-31-16 $ 67,500

Rent Revenue $ 67,500

Interest Revenue $ 63,000

Supplies $ 56,250

Insurance Expense $ 54,000

Delivery Expense $ 38,250

Prepaid Insurance $ 36,000

Supplies Expense $ 29,250

Interest Expense $ 27,000

Prepaid Rent $ 27,000

Property Tax Expense $ 13,500

Interest Payable $ 9,000

Miscellaneous Revenue $ 6,750

Taxes Payable $ 5,400

Requirements:

1. Prepare the company's multi-step income statement for the year ended December 31, 2018.

2. Prepare the company's statement of retained earnings for the year ended December 31, 2018.

3. Prepare the company's classified balance sheet at December 31, 2018.