McEntire Corporation began operations on January 1, 2012. During its first 3 years of operations, McEntire reported net income and declared dividends as follows.

		Net income		Dividends declared
2012		$ 40,000		$ -0-
2013		125,000		50,000
2014		160,000		50,000

The following information relates to 2015.

Income before income tax	$220,000
Prior period adjustment: understatement of 2013 depreciation expense (before taxes)	$ 25,000
Cumulative decrease in income from change in inventory methods (before taxes)	$ 45,000
Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2016)	$100,000
Effective tax rate	20% Prepare a 2015 retained earnings statement for McEntire Corporation. (List items that increase retained earnings first.) McENTIRE CORPORATION Retained Earnings Statement For the Year Ended December 31, 2015