Q No.4 Wolfa Company has outstanding two classes of $100 par value stock: 5000 shares of 8% cumulative preferred and 25,000 shares of common. The company had a $50,000 retained earning at the beginning of the current year, and preferred dividends had not been paid for two years. During the current year, the company earned $300,000. What will be the balance in retained earnings at the end of the current year, if the company pays a dividend of $2 per share on the common stock? Marks -06