Sage Hill Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end, July 31, 2024. The following information has been taken from the adjusted trial balance: Accounts payable $22,440 Interest expense $4,400 Cash dividends-common 52,800 Notes payable 88,000 Common shares 176,000 Retained earnings (Aug. 1, 2023) 309,760 Cost of goods sold 272,800 Salaries expense 123,200 Dividends payable 13,200 Sales 585,200 Income tax expense 26,400 Supplies expense 8,800 Income tax payable 2,640 Unearned revenue 10.560 All accounts have normal balances and total assets equal $719,400. Sage Hill has a 20% income tax rate. arine Dr WR Accounts payable $22,440 Interest expense $4,400 Cash dividends-common 52,800 Notes payable 88,000 Common shares 176,000 Retained earnings (Aug. 1, 2023) 309,760 Cost of goods sold 272,800 Salaries expense 123,200 Dividends payable 13,200 Sales 585,200 Income tax expense 26,400 Supplies expense 8,800 Income tax payable 2,640 Unearned revenue 10,560 All accounts have normal balances and total assets equal $719,400. Sage Hill has a 20% income tax rate. (a) Prepare a statement of retained earnings. (List items that increase retained earnings first.)