XYZ Corporation began operations on January 1, 2018. During its first 3 years of operations, XYZ Corporation reported net income and declared dividends as follows.

Net Income Dividends Declared

2018 $ 90,000 $ 0

2019 $ 125,000 $ 50,000

2020 $ 140,000 $ 80,000

The following information relates to 2021.

Income Before Income Tax $ 240,000

Prior Period Adjustment: Understatement of 2019 depreciation expense (before taxes) $ 25,000

Cumulative Increase in Income from change in inventory methods (before taxes) $ 45,000

Dividends Declared on Preference Shares $ 80,000

Dividends Declared on Ordinary Shares $ 53,000

Dividends Paid $ 100,000

Effective Tax Rate 20%

QUESTION

Prepare a 2021 retained earnings statement for XYZ Corporation.