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

	2018	2017
sales	207,000	175,000
Cost of Sales	78,000	66,000
Gross Profit	129,000	109,000
Expenses	58,000	58,000
Net Income	71,000	51,000
Retained Earnings (Jan. 1)	131,000	100,000
Net Income	71,000	51,000
Dividends	(25,000)	(20,000)
Retained Earnings (Dec. 31)	177,000	131,000

1. In 2018, Swifty, Inc. decided to switch its depreciation method from double-declining balance to the straight-line method. The depreciable assets were purchased at the beginning of 2017 for $47,000 with an estimated useful life of 5 years and no salvage value. The 2018 income statement above contains depreciation expense of $11,280 on these assets.

2. In 2018, the company discovered that the ending inventory for 2017 was understated by $8,800; ending inventory for 2018 is correctly stated.

Prepare the revised retained earnings statement for 2017 and 2018, assuming comparative statements.

SWIFTY INC. Retained Earnings Statement For the Year Ended 2018 2017 $ ta va $