Answer Happy

Swifty Corporation began operations on January 1, 2017. During its first 3 years of operations, Swifty reported net income and declared dividends as follows: Net income Dividends declared 2017 $44,000 $-0- 2018 132,600 57,800 2019 164,100 56,700 The following information relates to 2020. Income before income tax $242,000 $28,400 $40,200 Prior period adjustment: understatement of 2018 depreciation expense (before taxes) Cumulative decrease in income from change in inventory methods (before taxes) Dividends declared (of this amount, $28,400 will be paid on Jan. 15, 2021) Effective tax rate $114,500 20 %
Prepare a 2020 retained earnings statement for Swifty Corporation. (List items that increase adjusted retained earnings first.) SWIFTY CORPORATION Retained Earnings Statement For the Year Ended December 31, 2020 $ $