3. The following is the December 31, 2014 balance sheet for the Epics Corporation. Assets Liabilities Cash $70,000 Accounts payable $100,000 Accounts receivable 150.000 Notes payable 120.000 Inventory 280.000 Bonds payable 300.000 Total current assets 500.000 Total liabilities 520.000 Plant and equipment 1.250.000 Equity Less: acc, amortization 250.000 Common stock 500.000 Net plant and Equipment 1.000.000 Retained earnings 480.000 Total equity 980,000 Total assets $1.500.000 Total liab. & equity $1.500.000 Sales for 2014 were $2,000,000, with the cost of goods sold being 55% of sales. Amortization expense was 10% of the gross plant and equipment at the beginning of the year. Interest expense was 9% on the notes payable and 11% on the bonds payable. Selling, general, and administrative expenses were $200,000 and the firm's tax rate is 40%. A) Prepare an income statement for year ending 2015. (4 Points) B) If the dividend payout ratio for Epics is 35%, what is the value of the retained earnings account on December 31, 2014? (2 Points)