Retained earnings At the beginning of 2018, Falcon Corporation had 2 million shares of $2 par value common stock outstanding and retained earnings of $17 million. During 2018, Falcon earned $12 million, declared a 5% stock dividend when the price of the stock was $19 per share, and paid a year-end cash dividend of $2.50 per share. (The cash dividend was declared after the stock dividend had been distributed.) required: Prepare a statement of retained earnings for the year 2018