Trying to prepare a Statement of Retained Earnings. The company is in its first year so it has 0 for Beginning retention but I'm not sure what to do for net income. The COGS are 400,000 and the gross profit is the same but the profit margin for the year is 15%. The retention rate for the year is 80% so that means the dividend payout is 20%. How do I prepare the statement. Would the net income be 400,000 even though the cost equal this as well and would the dividend be 20% of the 400,000?