STATEMENT OF CHANGES IN RETAINED EARNINGS. At the end of 19x6, Wadsworth Corporation reported retained earnings of $317,200. During 19x7 Wadsworth had net income of $63,100, declared and paid cash dividends of $21,500, and declared and paid a 10% stock dividend in the amount of $14,200. In addition, Wadsworth determined that an error had caused its 19x4 income tax expense to be understated by $44,900.

REQUIRED:

Prepare a statement of changes in retained earnings for Wadsworth for 19x7.