Simple income statement showing information

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Reference no: EM131570767

You are preparing a forecast for next year of the amount that will be added to retained earnings. You have pulled together the following information:

Revenues are expected to be $100,000, and operating expenses will be $40,000.  You expect to pay interest of $10,000 on a loan. The company is planning to sell a piece of equipment that originally cost $4000 4 years ago. The current book value is $2000, and the sale price is $5000. The company owns stock in a subsidiary (75%) and expects to receive a dividend of $2000. It also loaned the subsidiary money, and expects to receive interest of $5000. Plans are to pay a $6000 dividend to the stockholders this year. Ordinary income tax rates are 40%, while capital gains rates are 20%. 

Could someone please help me outline a simple income statement showing this information, and show the amount that will be added to (or reduced from) Retained Earnings for the year?

Reference no: EM131570767

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