E2-5 (Relationships between retained earnings and revenues and expenses across time) Merrytown Services began operations in 1994. At the end of 1996 the company had a balance in its retained earnings account of $606. Compute the missing amounts in the following table, and comment on the company’s performance. Specifically, analyze the company’s sales growth, profits, profits as a percentage of sales, and dividends declared as a percentage of net income. 1996 1995 1994 Beginning retained earnings $366 $ 150 $ 0 Revenues for the period 9 • 1,200 900 Expenses for the period 900 840 9 • Dividends declared 160 9 • 100