Presented below are the comparative income and retained earnings statements for Cheyenne Inc. for the years 2020 and 2021. 2021 2020 Sales $310,000 $275,000 Cost of sales 180,000 135,000 Gross profit 130,000 140,000 Expenses 88,600 46,800 Net income $41,400 $93,200 Retained earnings (Jan. 1) $142,200 $72,500 Net income 41,400 93,200 Dividends (29,500) (23,500) Retained earnings (Dec. 31) $154,100 $142,200 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 $107,000 with an estimated useful life of 4 years and no salvage value. (The 2021 income statement contains depreciation expense of $32,100 on the assets purchased at the beginning of 2020.) 2. In 2021, the company discovered that the ending inventory for 2020 was overstated by $24,800; ending inventory for 2021 is correctly stated. Prepare the revised retained earnings statement for 2020 and 2021, assuming comparative statements. (Ignore income taxes.)