Wildhorse Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue $1,207,000 Discontinued operations loss (net of tax) 63,700 Selling expenses 129,400 Cash 58,200 Accounts receivable 90,700 Common stock 200,000 Cost of goods sold 702,600 Accumulated depreciation-machinery 181,200 Dividend revenue 8,700 Unearned service revenue 4,500 Interest payable 1,900 Land 360,000 Patents 108,000 Retained earnings, January 1, 2020 265,370 Interest expense 19,200 Administrative expenses 165,400 Dividends declared 26,600 Allowance for doubtful accounts 4,800 Notes payable (maturity 7/1/23) 219,000 Machinery 453,000 Materials 39,800 Accounts payable 64,400 The amount of income taxes applicable to income was $59,730, excluding the tax effect of the discontinued operations loss which amounted to $27,300. Required:
a. Prepare a multiple-step income statement.
b. Prepare a retained earnings statement.