On December 31, 2018, Perez Company had assets of $220,000, liabilities of $132,500, and capital stock of $40,000. During 2019, Perez earned revenues of $78,000 and incurred expenses of $38,750. Dividends declared and paid amounted to $6,000. a. Compute the company's retained earnings on December 31, 2018. b. Compute the company's retained earnings on December 31, 2019