Presented below is information related to Dickinson AG for 2022.
Retained earnings balance, January 1, 2022 ………………………. € 980,000
Sales revenue ………………………………………………………………….. 25,000,000
Cost of goods sold …………………………………………………………… 16,000,000
Interest expense ……………………………………………………………………. 70,000
Selling and administrative expenses …………………………………. 4,700,000
Write-off of goodwill ……………………………………………………………. 820,000
Income taxes …………………………………………………………………….. 1,244,000
Gain on the sale of investments ………………………………………….. 110,000
Loss due to flood damage …………………………………………………… 390,000
Loss on the disposition of the wholesale division (net of tax) .. 440,000
Loss on operations of the wholesale division (net of tax) ……….. 90,000
Dividends declared on ordinary shares ………………………………… 250,000
Dividends declared on preference shares ………………………………. 80,000
Instructions
Prepare an income statement and a retained earnings statement. Dickinson decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2022, there were 500,000 ordinary shares outstanding all year.
