Presented below is information related to Waterway Corp. for the year 2020.

Net sales		$1,508,000		Write-off of inventory due to obsolescence		$92,800
Cost of goods sold		904,800		Depreciation expense omitted by accident in 2019		63,800
Selling expenses		75,400		Casualty loss		58,000
Administrative expenses		55,680		Cash dividends declared		52,200
Dividend revenue		23,200		Retained earnings at December 31, 2019		1,136,800
Interest revenue		8,120		Effective tax rate of 20% on all items

Partially correct answer iconYour answer is partially correct.

Prepare a multiple-step income statement for 2020. Assume that 70,528 shares of common stock are outstanding for the entire year. (Round earnings per share to 2 decimal places, e.g. 1.49.)

Prepare a separate retained earnings statement for 2020. (List items that increase adjusted retained earnings first.)