Kahlan Opinion Surveys had beginning retained earnings of $24,600. During the year the company reported sales of $105,700, cost of $78,300, depreciation of $9,000 dividends of $1,200 and interest paid of $635. The tax rate is 21%. What is the retained earnings balance at the end of the year?

1. $35,835.50

2. $36,082.15

3. $36,121.41

4. $37,671.44

5. $37,434