Fec Corporation\'s capital structure consists of 45,000 ordinary shares in the beginning of the year 2020.

The company issues 10,000 ordinary shares on July.1, 2020. On December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information:

Sales ¥1,200,000

Purchase discounts 18,000

Purchases 642,000

Loss on discontinued operations 42,000

Selling expenses 150,000 Cash 60,000

Accounts receivable 90,000

Share capital 200,000

Accumulated depreciation 180,000

Dividend revenue 10,000

Inventory, January 1, 2020 152,000

Inventory, December 31, 2020 125,000

Unearned service revenue 4,400

Accrued interest payable 1,000

Land 370,000

Patents 100,000

Retained earnings, January 1, 2020 260,000

Interest expense 17,000

General and administrative expenses 130,000

Dividends declared 45,000

Allowance for doubtful accounts 5,000

Notes payable (maturity 1/1/2020) 200,000

Machinery and equipment 450,000

Materials and supplies 40,000

Accounts payable 60,000

Tax rate =25%

Instructions

(a) Prepare an income statement. Indicate the weighted number of ordinary shares outstanding for the year 2020.

(b) Prepare the retained earnings statement.