Sunway Corporation's capital structure consists of 40,000 ordinary shares. At December 31, 2019 an analysis of the accounts and discussions with company officials revealed the following information: Sales Purchase discounts Purchases Loss on discontinued operations (net of tax) Selling expenses Cash Accounts receivable Share capital Accumulated depreciation Dividend revenue Inventory, January 1, 2019 Inventory, December 31, 2019 Unearned service revenue Accrued interest payable Land Patents Retained earnings, January 1, 2019 Interest expense General and administrative expenses Dividends declared Allowance for doubtful accounts Notes payable (maturity 7/1/21) Machinery and equipment Materials and supplies Accounts payable 1,050,000 18,000 642,000 28,000 128,000 60,000 90,000 200,000 180,000 8,000 152,000 125,000 4,400 1,000 370,000 100,000 290,000 17,000 150,000 29,000 5,000 200,000 450,000 40,000 60,000 The amount of income taxes applicable to ordinary income was 33,600, excluding the tax effect of the discontinued operations loss which amounted to $12,000. Instructions (a) Prepare an income statement. (b) Prepare a retained earnings statement