Problem: The following selected accounts and their adjusted balances appear in the ledger of Fernandez Co. at the end of its fiscal year:
Cash $250,000 Retained Earnings 2,850,000
Accounts Receivable 1,197,000 Dividends 50,000
Inventory 1,790,000 Sales 9,350,000
Estimated Returns Inventory 23,500 Cost of Goods Sold 5,840,000
Office Supplies 14,000 Sales Salaries Expense 820,000
Prepaid Insurance 8,500 Advertising Expense 350,000
Office Equipment 870,000 Depr. Exp.-Store Equip. 120,000
Accum. Depr.-Office Equip. 580,000 Miscellaneous Selling Expense 58,000
Store Equipment 2,600,000 Office Salaries Expense 550,000
Accum. Depr.-Store Equip. 820,000 Rent Expense 104,000
Accounts Payable 336,000 Depr. Exp.-Office Equip. 60,000
Customer Refunds Payable 39,000 Insurance Expense 50,000
Salaries Payable 43,000 Office Supplies Expense 26,000
Notes Payable (long-term) 200,000 Miscellaneous Admin. Exp. 12,000
Common Stock 600,000 Interest Expense 25,000
TO-DO: What is Fernandez Co.'s ending retained earnings balance for the year?