Waterway Industries has 563000 shares of $10 par value common stock outstanding. During the year, Waterway declared a 14% stock dividend when the market price of the stock was $28 per share. Four months later Waterway declared a $0.50 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by

$ 394100.

$2527870.

$1103480.

$433510.