Question 1 The following information is related to Braddy Company for 2017. Retained earnings balance,

Retained earnings balance, January 1, 2017	988,750
Sales Revenue	26,251,600
Cost of goods sold	16,255,300
Interest revenue	72,900
Selling and administrative expenses	4,747,800
Write-off of goodwill	833,000
Income taxes for 2017	1,265,400
Gain on the sale of investments	120,600
Loss due to flood damage	396,200
Loss on the disposition of the wholesale division (net of tax)	457,500
Loss on operations of the wholesale division (net of tax)	89,120
Dividends declared on common stock	253,600
Dividends declared on preferred stock	76,320

Braddy Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Braddy sold the wholesale operations to Falcon Company. During 2017, there were 492,600 shares of common stock outstanding all year. Collapse question part

(A) Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49.)

(B) Prepare a retained earnings statement. (List items that increase retained earnings first.)