Current Attempt in Progress Rex Company reported retained earnings at December 31, 2017, of $420,000. Reese had 180,000 shares of common stock outstanding throughout 2018. The following transactions occurred during 2018. 1. Net income was $295,000. 2. A cash dividend of $0.50 per share was declared and paid. 3. A 5% stock dividend was declared and distributed when the market price per share was $15 per share. Prepare a retained earnings statement for 2018. (List items that increase retained earnings first.) REX COMPANY Retained Earnings Statement For the Year Ended December 31, 2018