E$11-16$ Preparing a Statement of Retalned Earnings and Partlal Balance Sheet and Evaluating Dividend Policy

LO $11-3,11-5$

The following account balances were selected from the records of beverage maker Blake Corporation at December $31$ after all adjusting entries were completed:

Common stock $($par $$15$ : authorized $100\mathrm{.}000$ shares, issued $35\mathrm{.}000$ shares, of which $1,000$ shares are held as treasury stock$)$ $$525,000$

Additional paid$-$in capital$-$common stock

$180,000$

Dividends

$28\mathrm{.}000$

Retained earnings, beginning of year

$76\mathrm{.}000$

Treasury stock at cost $(1\mathrm{.}000$ shares$)$

$20\mathrm{.}000$

Net income for the year was $$48\mathrm{.}000.$

Required:

Page $542$

Prepare the statement of retained earnings for the year ended December $31$ and the stockholders' equity section of the balance sheet at December $31.$

Determine the number of shares of stock that received dividends.

Compure the ROE ratio for the current year, assuming total stockholders' equity was $$629,000$ on December $31$ of the previous year.