Answer:
Pina Colada Corp.
Multi-step Income Statement for the year ended December 31, 2017:
Sales revenue                                   $2,304,000
Sales returns and allowances                 39,360
Net Sales                                            2,264,640
Cost of goods sold                              1,041,600
Gross profit                                         1,223,040
Rent revenue                                          23,040
Gross operating revenue                  1,246,080
Depreciation expense             120,000 
Salaries and wages expense 648,000
Freight-out                                24,000 
Advertising expense                52,800
Sales discounts                           8,160 
Insurance expense                   14,400 
Total operating expenses                   867,360
Operating income (EBIT)                   $378,720
Interest revenue                                   28,800   
Interest expense                                 (67,200)
Income before taxes                       $340,320
Income tax expense                            67,200
Net income                                       $273,120
Retained earnings                             513,600
Dividends                                          (144,000)
Retained earnings, Dec. 31, 2017  $642,720
Explanation:
a) Data and Calculations:
December 31, 2017: 
Common stock 240,000 
Retained earnings 513,600 
Inventory 64,320
Sales revenue 2,304,000
Sales returns and allowances 39,360
Rent revenue 23,040 
Interest revenue  28,800   
Cost of goods sold 1,041,600 
Depreciation expense 120,000 
Salaries and wages expense 648,000
Freight-out 24,000 
Advertising expense  52,800
Sales discounts 8,160 
Insurance expense 14,400 
Interest expense 67,200
Income tax expense 67,200 
Dividends 144,000