Presented below is information related to Ivan Calderon Corp. for the year 2025.

Instructions

a. Prepare a multiple-step income statement for 2025. Assume that 60,000 shares of common stock are outstanding for the entire year.

b. Prepare a separate retained earnings statement for 2025.

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Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue $1,300,000 780,000 65,000 48,000 20,000 7,000 Write-off of inventory due to obsolescence Depreciation expense omitted by accident in 2024 Casualty loss Cash dividends declared Retained earnings at December 31, 2024 Effective tax rate of 20% on all items $ 80,000 55,000 50,000 45,000 980,000