The following account balances were included in the trail balance of Twinings Corporation at December 31, 2015. The Retained Earnings account had a balance of $337,000 at January 1, 2015.

Prepare a single step income statement and a statement of retained earnings for the year ending December 31, 2015. Include a computation of gross profit in the revenue section of the income statement. Assume that the only changes in retained earnings during the current year were from net income and dividends.

Sales revenue $ 1,578,500

Sales discounts 31,150

Cost of goods sold 896,770

Salaries and wages expense 56,260

Sales commissions 97,600

Travel expense 28,930

Delivery expense 21,400

Entertainment expense 14,820

Depreciation expense 12,230

Maintenance and repairs expense 6,200

Miscellaneous selling expense 9,130

Telephone and internet expense 11,850

Office expense 6,000

Sales returns and allowances 62,300

Income tax expense 102,000

Cash dividends 37,00