On March 27, 2013, Leung and Wong organized their company LW Inc., as a corporation.

On March 27, 2013, the corporation issued a total of 5,000 common shares at $10 per share. Each shareholder received 2,500 shares.

On July 2, 2013 the corporation issued an additional 2,500 common shares to a new shareholder for total proceeds of $32,500.

The company reported a net income of $119,875 for the year ended December 31, 2013.

Cash dividend of $1.15 per share was declared on December 30, 2013. The cash dividend was paid on January 15, 2014.

The market value per common share of LW Inc. on December 31, 2013 was reliably estimated at $15 per share.

On December 31, 2013, 10% stock dividend was declared. The stock dividend was distributed on February 15, 2014.

1.What is the reported amount of Retained Earnings that would appear on the companys Statement of Financial Position as at December 31, 2013?

2. Assume that a four for one stock split takes place on March 1, 2014. What is the number of outstanding common shares on March 1, 2014 after the stock split?