Problem Two Presented below is information related to Roses Marie Company for the year 2017 Net sales $ 950,700 C

Problem Two

Presented below is information related to Roses Marie Company for the year 2017

Net sales                                                                                        $ 950,700

Cost of goods sold                                                                           450,800

Operating expenses                                                                         200,670

Dividend revenue                                                                               10,200

Interest revenue                                                                                 7,500

Interest expense                                                                                15,600

Depreciation expense omitted in 2016                                             35,700

Uninsured loss due to flood (unusual and infrequent)                     60,800

Dividends declared and paid                                                              22,800

Retained earnings at December 31, 2016                                    1,999,900

Effect on prior years of change in accounting principle (credit)        23,300

Loss from operations of discontinued segment of business            41,200

Loss from disposal of segment of business                                   110,400

Federal tax rate of 30% on all items       

Common stock shares outstanding 90,000 shares.                               

Instructions:

(a) Prepare the income statement (multiple) for 2017. (Remember calculation of EPS)

(b) Prepare the retained earnings statement for 2017.

(c) Remember preparing two disclosures in both financial statement.