Given the following information about a corporation's current year activities, compute the retained earnings for the current year by preparing a statement of retained earnings in proper form. Retained earnings, December 31 (prior year) $300,000 Cost of goods sold $90,000 Other operating expenses $54,000 Cash dividends $31, 800 Correction of understatement of net income in prior period (inventory error) $25,000 Stock dividends $20,000 Net income $40,000