Question

Sandrinistrative penes SSD Putin caming way.2020 $1,215,200 Sales 31,000,000 Cast of wedsseld 19.800.000 Terest Reserve 5.828.00 Wat of good 1,016 10 Inстите са tari 2000 1,50,560 Gain on the sale of in 140 Loescue to feed damage Loss on the deposition of the whole net of tax] Los on operations of the wholde divinat al tex) 111,000 Dividenda declared as common stack 310.00 Dividenda declared as preferred stock 99,200 Wicher Company decided to chantinua sentire whisperation camere decoredeperation and to retain string operation On September 15, wishers told the whole portione a Ragu Conary. During 2020, there were 500,000 Sheres of conna stock outstanding all year Prepare a nurile-step incorre statement (Houed earnings per share to 2 decimal places, s. 1.0%) WILDHORSE COMPANY Income Statement Prepare a retained earnings statement. (Let items that increase retained earnings flat.) WILDHORSE COMPANY Retained Barings Statement

Answer 1

WILDHORSE COMPANY

Income Statement

For the Year Ended December 31, 2020

Sales revenue		31,000,000
cost of goods sold		19,840,000
gross profit		11,160,000
selling and administrative expenses		5,828,000
income from operations		5,332,000
other revenues and gains
interest revenue	86,800
Gain on the sale of investment	136,400	223,200
		5,555,200
other expenses and losses
Write off of goodwill	1,016,800
Loss due to flood damage	483,600
		1,500,400
Income from the continuing operation before tax		4,054,800
income taxes		1,542,560
Income from continuing operation		2,512,240
Discontinued operations
loss on Disposal of the wholesale division (net of tax)	545,600
loss on operations of the whole sale division (net of tax)	111,600	657,200
net income		1,855,040
Earning per common shares
Income from continuing operations ($2,512,240/500,000)		5.02
Discontinued operations
loss on disposal of the whole sale division (net of tax) ($545,600/500,000)	1.09
loss on operations of the whole sale division (net of tax) ($111,600/500,000)	0.22
		(1.31)
Net income / (loss)		3.71

2.

WILDHORSE COMPANY

Statement of retained earnings

for the year ended 31 December, 2020

Retained earnings balance, January 1, 2020	1,215,200
Add: Net income	1,855,040
Less: Dividends ($310,000 + $99,200)	(409,200)
Retained earnings balance, December 31, 2020	2,661,040