The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

Retained earnings balance at the beginning of the year	$	132,500
Cash dividends declared for the year		52,500
Proceeds from the sale of equipment		87,500
Gain on the sale of equipment		8,300
Cash dividends payable at the beginning of the year		24,500
Cash dividends payable at the end of the year		27,800
Net income for the year		98,500

What is the ending balance for retained earnings?

Multiple Choice

• $208,500.

• $187,000.

• $178,500.

• $261,000.

• $289,000.