Marcos Company Reported the Following Items on Its Financial Statements

Multiple Choice

Marcos Company reported the following items on its financial statements for the year ending December 31, 2016: ? $$\begin{array} { l r l r } \text { Sales } & \$ 560,000 & \text { Cost of goods sold } & \$ 400,000 \\\text { Salary expense } & 40,000 & \text { Interest expense } & 30,000 \\\text { Dividends } & 20,000 & \text { Income tax expense } & 25,000\end{array}$$ ?
How much will be reported as retained earnings on Marcos' balance sheet at December 31, 2016, if this is the first year of operations?

A) $ 45,000
B) $ 65,000
C) $ 85,000
D) Not enough information is provided.