Problem 4-1

The following information is related to Flint Company for 2017.

Retained earnings balance, January 1, 2017		$989,040
Sales Revenue		26,170,900
Cost of goods sold		16,226,200
Interest revenue		77,000
Selling and administrative expenses		4,772,600
Write-off of goodwill		829,100
Income taxes for 2017		1,349,000
Gain on the sale of investments		117,100
Loss due to flood damage		392,900
Loss on the disposition of the wholesale division (net of tax)		455,300
Loss on operations of the wholesale division (net of tax)		93,560
Dividends declared on common stock		225,300
Dividends declared on preferred stock		73,250

Flint Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Flint sold the wholesale operations to Rogers Company. During 2017, there were 463,100 shares of common stock outstanding all year.

Prepare a multiple-step income statement.

Prepare a retained earnings statement.