Thelma and Louie, Inc., started the year with a balance of retained earnings of $543 million and ended the year with retained earnings of $589 million. The company paid dividends of $35 million to the preferred stockholders and $88 million to common stockholders. Calculate Thelma and Louie's net income for the year.

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Statement of Retained Earnings as of December 31,2018 in millions of dollars) Balance ofretained eamings, December 31, 2017 $543 Plus: Net income for 2018 Less: Cash dividends paid $35 Preferred stock Common stock Total cash dividends paid 123 5532 Balance ofretained eamings, December 31,2018