Midterm Corporation began operations on January 1, 2015. During its first 3 years of operations, Midterm Corporation reported net income and declared dividends as follows. Net Income Dividends Declared 2015 $ 40000 S 0 2016 $ 125000 $ 50000 2017 $ 160000 $ 50000 The following information relates to 2018. Income Before Income Tax $ 220000 Prior Period Adjustment: Overstatement of 2016 depreciation expente (before taxes) $ 25000 Cumulative Decrease in Income from change in inventory methods (before taxes) $ 45000 Dividends Declared $ 100000 Dividends Paid $ 75000 Effective Tax Rate 20%% Required: 1. Prepare a 2018 retained earnings statement for Midterm Corporation