You are preparing and income statement and analysis of retained earnings for Pacioli Wholesale Corporation for the years ended June 30, 2011 and 2012 based on the following information:
a. Sales for the year ended 6/30/11 were $1,289,040 and grew by 10% in the following year
b. Cost of goods sold is 60% of sales in both years.
c. Selling expense was $128,544 for YE 6/30/11 and went up by 8% the following year.
d. Administrative expense was $301,008 in the YE 6/30/11 and went up by 6% the following year.
e. Interest expense was $48,644 for YE 6/30/11 but the company managed to reduce this expense by 10% the following year.
f. Income taxes are 35% of pre-tax income in both years.
g. Retained earnings at 6/30/2010 was $265,080.
h. There were 10,000 shares which paid a $1.00 dividend per share in the 6/30/2011 year.
i. The following year, 1,000 more shares were issued and dividend of $1.50 was paid.