2018 2017 Sales Cost of sales Gross profit Expenses Net income Retained earnings (Jan. 1) Net income Dividends Retained eamings (Dec. 31) $324,000 186,D00 138,000 81,700 556,300 $167,400 56,300 $295,000 134,D00 161,000 48,700 $112,300o 112,300 (23,800 $167,400 (29,100) $194,60o The following additional information is provided 1. In 2018, Kingbird Inc. decided to switch its depreciation method from sum-af-the-years' digits to the straight-line methad. The assets were purchased at the beginning of 2017 for s9,000 with an estimated useful life of 1 years and 2. In 2018, the company discovered that the ending inventory for 2017 was overstated by $24,400; ending inventory for 2018 is correctly stated. Prepare the revised retained earnings statement for 2017 and 2018, assuming comparative statements. (Ignore income taxes.) no salvage valuc. (The 2018 income statement contains deprociation cxpense of $28,800 on the assets purchased at the boginning of 2017.) KINGBIRD INC. Retained Earnings Statement For the Year Ended 2018 2017