Sobeys Inc. is a private company. It reported beginning retained earnings at May 7, 2011, of $1,362.8 million. During the year ended May 5, 2012, it reported a profit of $322.5 million and declared and paid dividends on its common shares of $70.5 million. It also reported other deductions to retained earnings of $47.5 million.

Instructions

(a) Prepare a statement of retained earnings for the year ended May 5, 2012.

(b) If Sobeys were a publicly traded company, would it still have to prepare a statement of retained earnings? Explain.