Casper, Inc. has total assets of $250,000, total debt of $50,000, and 50,000 shares of common stock with a book value of $115,000 as of the beginning of their fiscal year. During the year the company produced taxable income of $138,000. The company also paid quarterly dividends of $.40 a share during the year. The tax rate is 35%. What is the amount of the retained earnings at the end of the fiscal year?

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First, calculate the net income after taxes: $138,000 - ($138,000 * 35%) = $138,000 - $48,300 = $89,700. Then, calculate the total dividends paid: 50,000 shares * $.40/share * 4 quarters = $80,000. Finally, calculate the retained earnings: $89,700 (net income) - $80,000 (dividends) = $9,700. However, the initial retained earnings must be considered, which is the equity not allocated to the stock at the beginning of the year. Equity at the beginning is total assets - total debt - book value of common stock = $250,000 - $50,000 - $115,000 = $85,000. Therefore, the retained earnings at the end of the year are initial retained earnings + net income - dividends = $85,000 + $9,700 = $94,700.