The income statement for Serentic Inc. for 2011 is shown below. With a net income of $15,000,

tax rate was at 27% in 2012, and the board of directors decided to cut the dividend payments by

50%.

2011

Sales

$77,280

COGS

$47,914

Gross Margin

$29,366

SG&A Expense

$7,890

Depreciation

expense

$2,090

EBIT

$19,386

Interest Expense

$860

Taxable Income

$18,526

Taxes

$5,373

Net Income

$13,154

Dividends

$850

Retained earnings

$12,304

What are the retained earnings for 2012?

Thank you!