Problem
The Torre Company has the following stockholders' equity account balances in stockholders equity on December 31.
Common Stock - $5 par, 60,000 shares issued $400,000
Paid-In Capital in Excess of Par-Common Stock 660,000
Preferred Stock - $100 par, 5,000 shares issued 580,000
Paid-In Capital in Excess of Par-Preferred 100,000
Retained Earnings 200,000
Treasury Stock (cost - $10 per share) 150,000
If net income for the year was $125,000 and a preferred stock dividend of $40,000 was paid, what was the beginning value of retained earnings?