At December 31, 2020, the following account balances were selected from the records of beverage maker Blake Corporation after all adjusting entries were completed:

Common shares (no-par value; authorized 100,000 shares; issued 35,000 shares)	$	525,000
Contributed surplus		180,000
Dividends declared and paid in 2020		28,000
Retained earnings, January 1, 2020		76,000

Net income for the year was $48,000. Required: 1. Prepare the statement of retained earnings for the year that ended on December 31, 2020, and the shareholders equity section of the balance sheet at December 31, 2020. (Amounts to be deducted should be indicated with minus sign.)

2-a. Compute the ROE ratio for 2020, assuming total shareholders equity on December 31, 2019 was $629,000. (Round your answer to 1 decimal place.)

2-b. This part of the question is not part of your Connect assignment.