As of December 31, 2014, Post Company had total cash of $162,000, notes payable of $86,200, and common stock of $53,000. During 2015, Post earned $42,000 of cash revenue, paid $23,000 for cash expenses, and paid a $3,600 cash dividend to the stockholders.
Required
a. Determine the amount of retained earnings as of December 31, 2014.