Wang Corporation's capital structure consists of 40,000 ordinary shares. At December 31, 2015 an analysis of the accounts and discussions with company officials revealed the following information:

Sales 1,050,000

Purchase discounts 18,000

Purchases 642,000

Loss on discontinued operations (net of tax) 28,000

Selling expenses 128,000

Cash 60,000

Accounts receivable 90,000

Share capital 200,000

Accumulated depreciation 180,000

Dividend revenue 8,000

Inventory, January 1, 2015 152,000

Inventory, December 31, 2015 125,000

Unearned service revenue 4,400

Accrued interest payable 1,000

Land 370,000

Patents 100,000

Retained earnings, January 1, 2015 290,000

Interest expense 17,000

General and administrative expenses 150,000

Dividends declared 29,000

Allowance for doubtful accounts 5,000

Notes payable (maturity 7/1/18) 200,000

Machinery and equipment 450,000

Materials and supplies 40,000

Accounts payable 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.