Sultan Inc. was organized on January 1, 2014. It reported the following for its first two years of operations:
Net earnings for 2014 ............. $ 31,000
Dividends for 2014 .............. 14,200
Total shareholders’ equity at end of 2014 ...... 130,000
Net earnings for 2015 ............. 42,000
Dividends for 2015 .............. 18,700
Total shareholders’ equity at end of 2015 ...... 250,000
Required:
Compute the ending balance of retained earnings for Sultan Inc. as at December 31, 2015. Show computations.