Larkspur Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end, July 31, 2017. The following information has been taken from the adjusted trial balance:

Accounts payable		$26,000		Interest expense		$5,600
Cash dividendscommon		57,000		Notes payable		120,000
Common shares		206,000		Retained earnings (Aug. 1, 2016)		309,400
Cost of goods sold		311,000		Salaries expense		133,000
Dividends payable		15,300		Sales		662,000
Income tax expense		29,900		Supplies expense		10,000
Income tax payable		2,700		Unearned revenue		12,100

All accounts have normal balances and total assets equal $807,000. Larkspur has a 29% income tax rate.

Prepare a statement of retained earnings