During the closing process for Matrix Corporation, retained earnings was affected by three separate transactions: an increase of $729,350, a decrease of $512,900, and a decrease of $40,000. For the year ending July 31, 2004, dividends of $40,000 were paid. As of August 1, 2003, the balance of retained earnings was $405,700.
(a) What was the net income or loss for the year ending July 31, 2004?
(b) Prepare a retained earnings statement for the year.