Problem 4-01 The following information is related to Blossom Company for 2020. Retained earnings balance, January 1, 2020 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2020 Gain on the sale of investments Loss due to flood damage Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $1,313,200 33,500,000 21,440,000 93,800 6,298,000 1,098,800 1,666,960 147,400 522,600 589,600 120,600 335,000 + 107,200 Blossom Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Blossom sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year. BLOSSOM COMPANY Income Statement For the Year Ended December 31, 2020 Sales Revenue 33,500,000 > Cost of Goods Sold 21,440,000 Gross Profit /(Loss) 12,060,000 Selling and Administrative Expenses 6,298,000 Income from Operations 5,762,000 Other Revenues and Gains Interest Revenue 93,800 Gain on the sale of Investments 147,400 241,200 Other Expenses and Losses c Write-off of Goodwill 1,098,800 Loss from Flood Damage 522,600 1,621,400 Income from Continuing Operations Before Income Tax 1,666,960 Income Tax Income Tax 1,666,960 Income from Continuing Operations Discontinued Operations Loss on Disposal, Net of Applicable Tax 589,600 Loss on Operations, Net of Applicable Tax 120,600 710,200 Net Income (Loss) Earnings Per Share Income from Continuing Operations Discontinued Operations Loss on Operations, Net of Applicable Tax Loss on Disposal, Net of Applicable Tax Net Income (Loss) SHOW LIST OF ACCOUNTS BLOSSOM COMPANY Retained Earnings Statement December 31, 2020 Retained Earnings, January 1 $ 1,313,200 AddNet Income / (Loss) Less Dividends-Common Stock $ 335,000 Dividends-Preferred Stock 107,200 442,200 Retained Earnings, December 31 Click if you would like to Show Work for this question: Open Show Work