Presented below are the comparative income and retained earnings statements for Blue Inc. for the years 2017 and 2018.

		2018			2017
Sales		$353,000			$276,000
Cost of sales		195,000			150,000
Gross profit		158,000			126,000
Expenses		89,600			49,100
Net income		$68,400			$76,900
Retained earnings (Jan. 1)		$121,500			$69,900
Net income		68,400			76,900
Dividends		(30,800	)		(25,300	)
Retained earnings (Dec. 31)		$159,100			$121,500

The following additional information is provided:

1.		In 2018, Blue 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 $102,500 with an estimated useful life of 4 years and no salvage value. (The 2018 income statement contains depreciation expense of $30,750 on the assets purchased at the beginning of 2017.)
2.		In 2018, the company discovered that the ending inventory for 2017 was overstated by $21,900; ending inventory for 2018 is correctly stated.

Prepare the revised retained earnings statement for 2017 and 2018, assuming comparative statements. (Ignore income taxes.)