Warm Company has just completed its first year of operations in Year 1. The company declared and paid dividends of $25,000. If the ending balance of Retained Earnings of 12/31, Year 1, is $45,000 and the company had revenues of $200,000 from Year 1 sales, Warm's Year 1 expenses totaled

A. $130,000

B. $140,000

C. $150,000

D. $160,000

E. $165,000