The following information is taken from accounting records of ABC Company as of the tiscal year ended December 31, 2007:

Net sales$900,000

Interest revenue 2,000

Dividend income 12,000

Cost of goods sold 600,000

Wages and salaries 100,000

Rent expense 30,000

Electricity 4200

Telephone 1,800

Advertising6,000

Interest expense16,000

Discontinued operation:

Loss on operation of discontinued operation 8,000

Gain on disposal of discontinued operation 3,000

Extraordinary loss7,500

Cash68,250

Marketable securities1,000

Accounts receivable104,640

Allowance for doubtful account5,000

Inventory174,020

Prepaid expenses1,800

Long-term investments in bonds 34,000

Long-term investments in stock 50,000

Land96,350

Building128,750

Accumulated depreciation- building29,000

Equipment85,000

Accumulated depreciation- equipment30,000

Intangible asset- copyright 2400

Intangible- assets-patent 10,000

Accounts payable80,710

Short-term notes payable5,000 Long- term notes payable 67,230

Long-term bonds payable 60,000

Discount on Bonds Payable10,000

Beginnings retained earnings balance195,640

Preferred stock50,000

Additional paid-in capital- preferred2000

ommon stock (10,000 shares Outstanding-16,000

dditional paid-in capital- common130,180

Additional information:

1. Company declared and paid $5,000 dividends to preferred stockholders Juring the year.

2. Income tax rate 30%

Required:

A. Prepare an income statement for the company using a Multiple-step tormat in a good form ( 18 points).

B. Prepare a statement of retained earnings for the company in a good form (4 points).

C. Prepare a classified balance sheet in a good torm for the company as of the end accounting period ( 18 points).