Eau Claire Paper Mill, Inc., had, at the beginning of the current fiscal year, April 1, 2010,

Question:

Eau Claire Paper Mill, Inc., had, at the beginning of the current fiscal year, April 1, 2010, retained earnings of $323,325. During the year ended March 31, 2011, the company produced net income after taxes of $713,445 and paid out 45 percent of its net income as dividends. Construct a statement of retained earnings and compute the year-end balance of retained earnings.