At the end of 2005, the Long Life Light Bulb Company announced it had produced a gross profit of $1 million. The company has also established that over the course of this year it has incurred $345,000 in operating expenses and $125,000 in interest expenses. The company is subject to a 30% tax rate and has declared $57,000 total preferred stock dividends. of estion Evaluate the importance of retained earnings for Long life bulb company Appraise the increased retained earnings for 2005 if the company were to declare a $4.25 common stock dividend. The company has 15,000 shares of common stock outstanding. (1 MARK) a. $50,000, The statement of retained earnings is important for company as it allows the firm to determine its debt ratio Ob. $250,250, The statement of retained earnings is important for company as it allows the firm to determine its retention ratio OC. $100,000, The statement of retained earnings is important for company as it allows the firm to determine its profitability ratio CLEAR MY CHOICE