37. Carlita began 2014 with a retained earnings account balance of $132,000. During 2014, it declared and paid dividends of $5,000. Its December 31, 2014, retained earnings account balance is $132,000 is $120,000 is $139,000 cannot be calculated Carlita Company Income Statement for Year Ending December 31,2014 Sales. Less: Cost of Goods Sold. Gross Margin. Less: Operating Expenses. Operating Income.... Less: Interest Expense... Income Before Taxes. Less: Tax Expense.... Net Income. $120,000 90,000 $30,000 10,000 $20,000 2,000 $18,000 6,000 $12,000