Statement of Retained Earnings TriCycle, Corp. began the year 2008 with $27 million in retained earnings. The firm earned net income of $8.7 million in 2008 and paid $1.17 million to its preferred stockholders and $3.17 million to its common stockholders. What is the year-end 2008 balance in retained earnings for TriCycle?

$31.36 million $40.04 million $27 million $35.7 million