Reference no: EM132898848
The following information is related to Waterway Company for 2020.
Retained earnings balance, January 1, 2020 $1,234,800
Sales Revenue 31,500,000
Cost of goods sold 20,160,000
Interest revenue 88,200
Selling and administrative expenses 5,922,000
Write-off of goodwill 1,033,200
Income taxes for 2020 1,567,440
Gain on the sale of investments 138,600
Loss due to flood damage 491,400
Loss on the disposition of the wholesale division (net of tax) 554,400
Loss on operations of the wholesale division (net of tax) 113,400
Dividends declared on common stock 315,000
Dividends declared on preferred stock 100,800
Waterway Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Waterway sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.
Problem 1: Prepare a multiple-step income statement.