Presented below are the comparative income and retained earnings statements for Blossom Inc. for the years 2020 and 2021. 2021 2020 Sales $346,000 Cost of sales 198,000 Gross profit 148,000 Expenses 82,700 Net income $65,300 Retained earnings (Jan. 1) $147,400 Net income 65,300 Dividends (27,100) Retained earnings (Dec. 31) $185,600 $286,000 140,000 146,000 47,000 $99,000 $75,500 99,000 (27,100) $147,400 The following additional information is provided: 1. In 2021, Blossom 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 $109,500 with an estimated useful life of 4 years and no salvage value. (The 2021 income statement contains depreciation expense of $32,850 on the assets purchased at the beginning of 2020.) 2. In 2021, the company discovered that the ending inventory for 2020 was overstated by $22,000; ending inventory for 2021 is correctly stated. Prepare the revised retained earnings statement for 2020 and 2021, assuming comparative statements. (Ignore income taxes.) BLOSSOM INC. Retained Earnings Statement For the Year Ended 2021 2020 V: $ ta