PROBLEM 12.2A Format of an Income Statement and a Statement of Retained Earnings QL012-2, L012-3 1012-5, OLO12-6 The following data relate to the operations of Slick Software, Inc., during 2021. $19,850,000 16,900,000 Continuing operations: Net sales Costs and expenses (including applicable income tax) Other data: Operating income during 2021 on segment of the business discontinued near year-end (net of income tax) Loss on disposal of discontinued segment (net of income tax benefit) Prior period adjustment (increase in 2020 depreciation expense, net of income tax benefit) Cash dividends declared 140,000 550,000 350,000 950,000 Instructions a. Prepare a condensed income statement for 2021, including earnings per share figures. Slick Software, Inc., had 200,000 shares Page 555 of $1 par value common stock and 80,000 shares of $6.25, $100 par value preferred stock outstanding throughout the year. b. Prepare a statement of retained earnings for the year ended December 31, 2021. As originally reported, retained earnings at December 31, 2020, amounted to $7,285,000. c. Compute the amount of cash dividend per share of common stock declared by the board of directors for 2021. Assume no dividends in arrears on the preferred stock. d. Assume that 2021 earnings per share is a single figure and amounts to $8.00. Assume also that there are no changes in outstanding common or preferred stock in 2022. Do you consider the $8.00 earnings per share figure in 2022 to be a favorable or unfavorable figure in comparison with 2021 performance? Explain