Pharoah was reviewing his company's activities at the end of the year (2022) and decided to make a retained earnings statement. At the beginning of the year his assets were $545,000, liabilities were $120,000, and common stock was $110,000. The net income for the year was $285,000. Dividends of $225,000 were paid during the year.

Make a retained earnings statement in good form.(List items that increase retained earnings first.)