Presented below is information related to Dickinson Company for 2010.
Retained earnings balance, January 1, 2010
Sales for the year
Cost of goods sold
Selling and administrative expenses
Write-off of goodwill (not tax deductible)
Income taxes for 2010
Gain on the sale of investments (normal
Loss due to flood damage-extraordinary
Loss on the disposition of the wholesale
Loss on operations of the wholesale
Dividends declared on common stock
Dividends declared on preferred stock
Prepare a multiple-step income statement and a retained earnings statement. Dickinson Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2010, there were 500,000 shares of common stock outstanding all year.