Presented below are the comparative income and retained earnings statements for Carla Inc. for the years 2017 and 2018 2018 2017 $328,000 212,000 116,000 87,100 $28,900 $101,900 28,900 $255,000 151,000 104,000 50,700 $53,300 $75,700 53,300 (27,100) $101,900 Sales Cost of sales Gross profit Net income Retained ernings Dan. 1) Net income Dividends Retained earnings (Dec. 31) (31,300) $99,500 The following additional information is provided: 1. In 2018, Carla 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 2017 for $95,000 with an 2. In 2018, the company discovered that the ending inventory for 2017 was overstated by $22,800; ending inventory for 2018 is correctly stated. Prepare the revised retained earnings statement for 2017 and 2018, assuming comparative statements. (Ignore income taxes.) estimated useful life of 4 years and no salvage value. (The 2018 income statement contains depreciation expense of $28,500 on the assets purchased at the beginning of 2017.) CARLA INC. Retained Earnings Statement For the Year Ended 2018 2017