Presented below are the comparative income and retained earnings statements for Cheyenne Inc. for the years 2020 and 2021.

		2021			2020
Sales		$328,000			$255,000
Cost of sales		212,000			151,000
Gross profit		116,000			104,000
Expenses		87,100			50,700
Net income		$28,900			$53,300
Retained earnings (Jan. 1)		$101,900			$75,700
Net income		28,900			53,300
Dividends		(31,300	)		(27,100	)
Retained earnings (Dec. 31)		$99,500			$101,900

The following additional information is provided:

1.		In 2021, Cheyenne 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 $95,000 with an estimated useful life of 4 years and no salvage value. (The 2021 income statement contains depreciation expense of $28,500 on the assets purchased at the beginning of 2020.)
2.		In 2021, the company discovered that the ending inventory for 2020 was overstated by $22,800; ending inventory for 2021 is correctly stated.

Prepare the revised retained earnings statement for 2020 and 2021, assuming comparative statements. (Ignore income taxes.)

Prepare the revised retained earnings statement for 2020 and 2021, assuming comparative statements. (Ignore income taxes.) CHEYENNE INC. Retained Earnings Statement For the Year Ended 2021 2020 $ $ $