Current Attempt in Progress Presented below are the comparative income and retained earnings statements for Flint Inc for the years 2020 and 2021. 2021 2020 Sales $352,000 $ 289,000 Cost of sales 215,000 150,000 137,000 139,000 Gross profit Expenses 94,500 48,100 Net income $ 42,500 $ 90,900 Retained earnings (Jan. 1) $ 134,900 $ 68,500 42,500 90.900 Net income Dividends Retained earnings (Dec. 31) (32,500) (24,500) $ 144,900 $ 134.900 The following additional information is provided: 1. In 2021, Flint Inc. decided to switch its depreciation method from sum-of-the-years' digits to the straight-line method. The assets were purchased at the beginning of 2020 for $ 92,000 with an estimated useful life of 4 years and no salvage value. (The 2021 income statement contains depreciation expense of $ 27,600 on the assets purchased at the beginning of 2020.) In 2021, the company discovered that the ending inventory for 2020 was overstated by $ 23,700; ending inventory for 2021 is correctly stated. 2. Prepare the revised retained earnings statement for 2020 and 2021, assuming comparative statements. (Ignore income taxes.) The following additional information is provided: 1. In 2021, Flint Inc. decided to switch its depreciation method from sum-of-the-years' digits to the straight-line method. The assets were purchased at the beginning of 2020 for $ 92,000 with an estimated useful life of 4 years and no salvage value. (The 2021 income statement contains depreciation expense of $ 27,600 on the assets purchased at the beginning of 2020.) In 2021, the company discovered that the ending inventory for 2020 was overstated by $ 23,700; ending inventory for 2021 is correctly stated. 2. Prepare the revised retained earnings statement for 2020 and 2021, assuming comparative statements. (Ignore income taxes.) FLINT INC. Retained Earnings Statement For the Year Ended 2021 2020 V: