Exercise 4-12 Cullumber Corporation began operations on January 1, 2014. During its first 3 years of operations, Cullumber reported net income and declared dividends as follows: Net income Dividends declared 2014 2015 $49,700 126,400 $ -0- 51,200 54,800 2016 161,500 The following information relates to 2017: Income before income tax Prior period adjustment: understatement of 2015 depreciation expense (before taxes) Cumulative decrease in income from change in inventory methods (before taxes) Dividends declared (of this amount, $25,600 will be paid on January 15, 2018) Effective tax rate $247,900 $25,600 $37,000 $106,000 40 % Your answer is partially correct. Try again. Prepare a 2017 retained earnings statement for Cullumber Corporation. (List items that increase adjusted retained earnings first.) CULLUMBER CORPORATION Retained Earnings Statement For the Year Ended December 31, 2017 X ERRERIER