The Western Pipe Company has the following capital section in its balance sheet. Its stock is currently selling for $$5$ per share.

Common stock $(40,000$ shares at $$2$ par$)$ $ $80,000$

Capital in excess of par $80,000$

Retained earnings $180,000$

Total equity $ $340,000$

The firm intends to first declare a $15$ percent stock dividend and then pay a $25-$cent cash dividend $($which also causes a reduction of retained earnings$).$ The Western Pipe Company has the following capital section in its balance sheet. Its stock is currently selling for $$5$ per share.

Common stock $(40,000$ shares at $$2$ par$)$ $ $80,000$

Capital in excess of par $80,000$

Retained earnings $180,000$

Total equity $ $340,000$

The firm intends to first declare a $15$ percent stock dividend and then pay a $25-$cent cash dividend $($which also causes a reduction of retained earnings$).$

The retain earnings are incorrect and I can't see the mistake. Can you help?

These are my answers excep for the retaining earnings. I can't figure it out and this is incorrect in which you sent me$.$ Please revisit and provide step by step directions

Western Pipe Company

After Cash Dividend

Common stock $$92,000$

Capital in excess of par $98,000$

Retained earnings $60,000$

Total equity $$250,000$