Sage Hill Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end, July 31, 2021. The following information has been taken from the adjusted trial balance: Accounts payable $23,500 Interest expense $6,100 Cash dividends-common 63,500 Notes payable 116,500 Common shares 185,000 Retained earnings (Aug. 1, 2020) 347,300 Cost of goods sold 300,500 Salaries expense 139,000 Dividends payable 15,000 Sales 651,500 Income tax expense 27,500 Supplies expense 11,500 Income tax payable 2,300 Unearned revenue 12,000 All accounts have normal balances and total assets equal $805,000. Sage Hill has a 20% income tax rate. Prepare a statement of retained earnings. (List items that increase retained earnings first.) SAGE HILL INC. Statement of Retained Earnings $ $