Northwood Architects Ltd. Is a private company reporting under ASPE. It is authorized to issue an unlimited number of common and $3 cumulative preferred shares. The following is an alphabetical list of its adjusted accounts at March 31, 2024, its fiscal year end. All accounts have normal balances. Accounts payable $21,350 Income tax expense $16,535 Accounts receivable 38,700 Insurance expense 6,550 Accumulated depreciation--equipment 23,650 Interest expense 3,000 Cash 54,600 Notes payable 50,000 Cash dividendscommon 40,000 Preferred shares 56,250 Cash dividendspreferred 4,500 Prepaid expenses 6,150 Common shares 75,000 Rent expense 35,800 Consulting revenue 404,500 Retained earnings 64,800 Depreciation expense 11,825 Salaries expense 245,400 Dividends payable 15,000 Salaries payable 2,310 Equipment 224,000 Supplies expense 25,800 There are 1,500 preferred and 75,000 common shares issued. Instructions Prepare the statement of retained earnings, and the shareholders equity section of the balance sheet. Calculate return on Equity. Note: No shares were issued during the year. Why is it important that retained earnings be tracked and presented separately from share capital in the balance sheet