The Kroger Company, a large grocery company, had retained earnings of \(\$ 792.6\) million at the beginning of \(19 \times 7\). The company showed these figures at December 31, 19X7:

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Beginning with net income, prepare a combined statement of income and retained earnings for The Kroger Company for \(19 \mathrm{X} 7\). What type of transaction caused the \(\$ 11.3\) million debit to Retained Earnings?

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Increases in retained earnings: Net income... Decreases in retained earnings: Cash dividends preferred... common.. Debit to retained earnings due to purchase of preferred stock. ($ Millions) $127.1 2.3 85.2 11.3