Hugo Precious Metals had beginning retained earnings of $25,338. During the year, the firm reported sales of $108,871, costs of $80,649, depreciation expenses of $9,270, dividends of $1,236, and interest paid of $654. The tax rate is 21 percent. What is the retained earnings balance at the end of the year?

A.

$36,082.15

B.

$38,835.50

C.

$38,557.42