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Fernwood Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

Retained earnings balance at the beginning of the year	$ 303,000
Cash dividends declared for the year	67,500
Proceeds from the sale of equipment	115,800
Gain on the sale of equipment	6,600
Cash dividends payable at the beginning of the year	29,700
Cash dividends payable at the end of the year	37,000
Net income for the year	148,500

The ending balance in retained earnings is:

$302,100.

$451,500.

$384,000.

$390,600.

$395,700.