The following information was obtained from the records of Wilcox, Inc., as of December 31, 2012.

Required:
1. Prepare an income statement for the year ended December 31, 2012.
2. Prepare a classified balance sheet as of December 31, 2012.
3. Interpretive Question: Why is the balance in Retained Earnings so large as compared with the balance in CapitalStock?

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Land Buildings Salaries expense. Utlities expense.. Accounts payable Revenues Supplies Retained earnings (1/1/12) Capital stock (2,000 shares S 42,500 197,550 125,350 5,250 38,050 389,950 72,500 311,000 S90,000 110,600 Accounts receivable Supplies expense.. Cash Notes payable (long-term) .. 63,800 Rent expense.21,200 Dividends in 2012 Other expenses.. Income taxes 95,500 11,250 35,000 outstanding) 65,000