Baucum Company started the year with retained earnings of $40,000. During the year, revenues of $35,000 were earned and $15,000 of expenses were incurred. The company paid out $3,500 of dividends during the year. At what amount would ending retained earnings be reported on the retained earnings statement? 40,000 86,500 56,500 16,500 35,000 0 93,500 63,500