Linda's Lights balance sheet info for the beginning of 2020:

Owners Equity 27 million

Bank Loan 10 million, 4.5% interest rate

Fixed Assets 10 million Inventory 23 million

Cash 4 million

Here are info for 2020:

Purchased 220 thousand lamps for $100 each, sold them for $125 each

Incurred additional operating costs of $2 million Purchased 5 trucks for $100,000 each

Profits tax 15%

Dividend payout ratio 30%

Q: What are Retained Earnings?

Please show your calculation process