3-09. Financial statements The Davidson Corporation's balance sheet and income statement are given below: Davidson Corporation: Balance Sheet as of December 31, 2008 (Millions of Dollars) ASSETS LIABILITIES AND EQUITY Cash and equivalents $15 Accounts payable $100 Accounts receivable 570 Notes payable 210 Inventories 900 Accruals 240 Total current assets $1,485 Total current liabilities $550 Net plant and equipment 2,445 Long-term bonds 1,500 Total debt $2,050 Common stock (100 million shares) 280 Retained earnings 1,600 Common equity $1,880 Total assets $3,930 Total liabilities and equity $3,930 Davidson Corporation: Income Statement for Year Ending December 31, 2008 (Millions of Dollars) Sales $5,250 Operating costs excluding depreciation and amortization 3,360 EBITDA $1,890 Depreciation and amortization 262.5 EBIT $1,627.5 Less: Interest 164 EBT $1,463.5 Taxes (40%) 585.4 Net income $878.1 Common dividends paid $636.6225 Earnings per share $8.781 a. Construct the Statement of Retained Earnings for December 31, 2008. Round your answer to two decimal places. Balance of Retained Earnings, December 31, 2007 million