Thelma and Louie's Inc started the year with a balance of retained earnings of $547 million and ended the ear with retained earnings of $594 million. The company paid dividends of $37 million to the preferred stockholders and $77 million to common stockholder.

I need to see it worked out.

Sure! To calculate the net change in retained earnings for Thelma and Louie's Inc, we need to consider the adjustments made during the year.

First, let's take the beginning balance of retained earnings and subtract any dividends paid to preferred stockholders. In this case, the dividends paid to preferred stockholders were $37 million.

Beginning Retained Earnings - Dividends to Preferred Stockholders = $547 million - $37 million = $510 million

Next, we need to subtract the dividends paid to common stockholders from the previous result. The dividends paid to common stockholders were $77 million.

Adjusted Beginning Retained Earnings - Dividends to Common Stockholders = $510 million - $77 million = $433 million

Finally, we need to calculate the net change in retained earnings by subtracting the adjusted beginning retained earnings from the ending retained earnings. The ending retained earnings were $594 million.

Net Change in Retained Earnings = Ending Retained Earnings - Adjusted Beginning Retained Earnings = $594 million - $433 million = $161 million

Therefore, the net change in retained earnings for Thelma and Louie's Inc is $161 million.