Fernwood Company is preparing the company's statement of cash flows for the fiscal year just ended. What is the change in the retained earnings? The following information is available:

Retained earnings balance at the beginning of the year	$298,000
Cash dividends declared for the year	66,250
Proceeds from the sale of equipment	113, 600
Gain on the sale of equipment	6,450
Cash dividends payable at the beginning of the year	29,150
Cash dividends payable at the end of the year	36,500
Net income for the year	145,750

a	$377,500.
b	$388,900.
c	$443,750.
d	$383,950.