The pro forma accumulated retained earnings account on the balance sheet is projected to be:

Income Statement

Hennesaw Lumber Inc

For the year ended December 31, 2014

Sales Revenue $4,2000,000

Less Cost of Goods Sold 3,570,000

Gross Profits 630,000

Less Operating Expense 210,000

Operating Profits 420,000

Less Interest Expense 105,000

Net profit before taxes 315,000

Less taxes (40%) 126,000

Net profits after taxes 189,000

Less Cash Dividends 120,000

To: Retained Earnings 69,000

The pro forma accumulated retained earnings account on the balance sheet is projected to be ________.

		$67,000
		$57,000
		$52,500
		$62,500