Sarah Lou Bakery, Inc., reported a prior-period adjustment in 2008. An accounting error caused net income of prior years to be overstated by \(\$ 5,000\). Retained earnings at December 31, 2007, as previously reported, stood at \(\$ 39,000\). Net income for 2008 was \(\$ 70,000\), and dividends were \(\$ 24,000\)

Requirement 

Prepare the company's statement of retained earnings for the year ended December 31, 2008.