During its first five years of operations, Red Raider Consulting reports net income and pays dividends as follows.

Required:

Calculate the balance of retained earnings at the end of each year. Note that retained earnings will always equal $0 at the beginning of year 1.

Year	Net Income	Dividends	Retained Earnings
1	$800	$420
2	1,300	420
3	1,300	600
4	2,400	600
5	3,600	600