Fernwood Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

Retained earnings balance at the beginning of the year	$	328,000
Cash dividends declared for the year		73,750
Proceeds from the sale of equipment		126,800
Gain on the sale of equipment		7,350
Cash dividends payable at the beginning of the year		32,450
Cash dividends payable at the end of the year		39,500
Net income for the year		162,250

The ending balance in retained earnings is:

Multiple Choice

• $423,850.

• $429,700.

• $490,250.

• $330,350.

• $416,500.