Prime Ltd. presents the following profit and loss account for the year ended 31st March 2024:

Particulars	Amount (₹)
Sales	22,00,000
Cost of Goods Sold	13,00,000
Gross Profit	9,00,000
Operating Expenses	5,00,000
Operating Profit	4,00,000
Interest Expenses	70,000
Net Profit before Tax	3,30,000
Tax	1,20,000
Net Profit	2,10,000

1. PREPARE the statement of retained earnings.
2. CALCULATE the dividend payout ratio if ₹80,000 is paid as dividends.
3. ANALYZE the impact on retained earnings if net profit increases by 20%.
4. EVALUATE the effect of reducing operating expenses by 8% on net profit.
5. DISCUSS the strategic importance of retained earnings for future investments.