Exercise 1-14 (Algo) Calculate the balance of retained earnings (LO1-3) During its first five years of operations, Pinkman 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 $ 1,100 $ 480 2 1,600 480 3 1,900 900 4 3,000 900 5 4,200 900