Jule’s Dairy Farm, Inc., reported the following (incomplete) information in its records for 2010:
Net income ............. $ 25,000
Sales ................. 115,000
Beginning balance—retained earnings ... 20,000
Cost of goods sold ........... 45,000
Dividends declared and paid ........ 2,250
1. If the sales revenue given is the only revenue for the year, what were the expenses for the year other than cost of goods sold?
2. What is the balance of retained earnings at the end of 2010?