M Company had a retained earnings balance of $4,200 on June 30, 2010. For the fiscal year

Question:

M Company had a retained earnings balance of $4,200 on June 30, 2010. For the fiscal year ended June 30, 2011, sales were $24,000 and expenses were $12,500. Cash dividends of $2,500 were declared and distributed on June 1, 2011.
What was the amount of retained earnings on June 30, 2011?