Problem:
Cindy's Crafts had beginning retained earnings of $51,200. During the year, the company reported sales of $112,400, costs of $75,800, depreciation of $9,100, dividends of $1,500, and interest paid of $2,300. The tax rate is 34 percent.
Requirement:
Question 1: What is the retained earnings balance at the end of the year? Explain in detail and give step by step elucidation.