Exercise 226-9 Presented below are the comparative income and retained earnings statements for Larkspur Inc. for the years 2017 and 2018 2018 2017 $286,000 140,000 146,000 47,000 $99,000 $75,500 99,000 $346,000 Sales Cost of sales Gross proft Expenses Net income Retained earnings (Jan. 1) Net income Dividends Retained earnings (Dec. 31) 198,000 148,000 82,700 $65,300 $147,400 65,300 (27,100)(27,100) $185,600STA $147,400 The following additional information is provided: 1. In 2018, Larkspur 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 201 $109,500 with an estimated useful life of 4 years and no salvage value. (The 2018 income statement contains depreclation expense of $32,850 on the assets purchased at the beginning of 2017.) 2. In 2018, the company discovered that the ending inventory for 2017 was overstated by $22,000; ending inventory for 2018 is correctly stated Prepare the revised retained earnings statement for 2017 and 2018, assuming comparative statements (Ignore income taxes. ) For the Year Ended