Answer:
                CHEESE FACTORY INCORPORATED
                             Income Statement
                 For the Year Ended August 31, 2015
Revenues:  
Sales revenue                                                 $1,738,000
Total revenue                                           $1,738,000
Expenses
Salaries and wages expense  $975,000
Office expenses                       $115,000
Utilities expense                       $550,000
Total expenses                                                <u>$1,640,000</u>
Net income                                                      <u>$98,000</u>
                 CHEESE FACTORY INCORPORATED
                    Statement of Retained Earnings
               For the Year Ended August 31, 2015
Retained earnings, beginning       $414,000
Add: Net income                            $98,000
Less: Dividends                              <u>$14,000  </u>
Retained earnings, ending           <u>$498,000</u>