Exercise 4-12 (Part Level Submission) Indigo Corporation began operations on January 1, 2014 . During its first 3 years of operations, Indigo reported net income and declared dividends as follows 2014 2015 2016 Net income $49,500 128,600 161,000 Dividends declared $-0- 59,600 8,800 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, $32,000 will be paid on January 15, 2018) Effective tax rate $231,000 $32,000 $44,800 $118,400 40 % Prepare a 2017 retained earnings statement for Indigo Corporation. (List items that increase adjusted retained earnings first.) INDIGO CORPORATION Retained Earnings Statement