E4-8 (Multiple-Step Statement with Retained Earnings) Presented below is information related to Brokaw Corp. for the year 2012. Net sales $1,200,000 Cost of goods sold 780,000 Selling expenses 65,000 Administrative expenses 48,000 Dividend revenue 20,000 Interest revenue 7,000 Write-off of inventory due to obsolescence $ 80,000 Depreciation expense omitted by accident in 2011 40,000 Casualty loss (extraordinary item) before taxes 50,000 Cash dividends declared 45,000 Retained earnings at December 31, 2011 980,000 Effective tax rate of 34% on all items 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 for 2012