Blockbuster is a video rental and retail chain. Blockbuster is forecasting its financial statements for Year 3. Selected financial information for Year 2 is provided in the table

What is Retained Earnings for Year 3?

Selected Financial Information
Blockbuster Inc ($ '000)
Year 2 Ratios
(to Sales) Forecast
Year 3
Revenue $5,157,600 $5,673,360
COGS 2,420,700 0.469346
SG&A 2,532,400 0.491004
R&D 176,100 0.034144
Dep. Exp. 246,600 300,000
EBIT -218,200
Int. Exp. 78,200 78,000
EBT -296,400
Provision for Income Taxes -56,100 0.19*
Net Income $ -240,300
Dividends $0
Retained Earnings $ -327,100
Owner's Equity $ -427,100
*Tax rate is a proportion of Earnings before Taxes.
A) $-46,224
B) $-47,279
C) $-329,300
D) $-607,976
E) $-707,976

D