Compute the retained Earnings(12/31/2005)

5 Longer Answer (1 Question, 10 minutes, 15 points) For this question, use Oceanic Air's balance sheet, income statement, excerpts from the statement of cash flows and the additional information items that appear below. The required work for this question appears on the following page. N/A stands for not available (you need to calculate it by yourself). N/A does not equal 0. Oceanic Air Inc Balance Sheet At December 31, 2004 2005 Assets Cash Prepaid Rent Inventory PPE, net Total Assets Oceanic Air Inc Income Statement For the year 2004 2005 Revenues 44,204 52,656 Cost of sales (34,209) (35,843) Gross margin 9.995 16,813 Wage expenses 4,532 3,245 Other expenses 1.521 8,318 Net income 3,942 5,250 (B) 258 3,423 53.234 (A) (C) 369 NA E N/A Liabilities Accounts Payable Notes Payable Unearned Revenues Total Liabilities 564 12,000 4.365 16,929 678 12,000 5.689 18,367 Shareholders' Equity Contributed Capital Retained Earnings Total Equity Total Liabilities and equity Oceanic Air Inc Cash Flow Statement For the year 2004 2005 Cash From Operations 3,128 6,520 Cash From Investing (2,000) (3,500) Cash From Financing (1,500) (2,000) 45,000 2.442 47,442 45,000 (D N/A N/A N/A Additional information: 1. The only "financing activity in the statement of cash flow in both years relates to cash payments of dividends. 2. Cash from investing activity" in 2005 relates to the purchase of additional equipment in cash. No other equipment was purchased in 2005. 3. Depreciation expense in 2005 amounted to $1.058