Presented below is information related to Brokaw Corp. for the year 2012.

Instructions(a) Prepare a multiple-step income statement for 2012. Assume that 60,000 shares of common stock are outstanding.(b) Prepare a retained earnings statement for2012.

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$1.200,000 780,000 65,000 48,000 20,000 7,000 Write-off of inventory due to obsolescence Depreciation expense omitted by accident in 2011 Casualty loss (extraordinary item) before taxes Cash dividends declared Retained earnings at December 31, 2011 Effective tax rate of 34% on all items Net sales $ 80,000 40,000 50,000 45,000 980,000 Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue