Minden Corporation was incorporated on August 1, 2010, by five shareholders who each invested $50,000 in cash in exchange for common shares. Minden’s year end is July 31. In its first year of business Minden had net income of $97,500. For its years ended July 31, 2012 and 2013, its second and third years of operation, Minden reported net income of $189,000 and

$225,000, respectively. In its first year Minden didn’t pay any dividends, but in fiscal 2012 it paid $25,000 in dividends and in 2013 it paid $40,000 in dividends.

Required

Prepare a statement of retained earnings for the year ended July 31, 2013.