Give me correct answer with explanation Presented below are the comparative income and retained earnings statements for Sunland Inc. for the years 2025 and 2026.20262025Sales$358,000$289,000Cost of sales213,000147,000Gross profit145,000142,000Expenses81,80049,400Net income$63,200$92,600Retained earnings (Jan. 1)$132,400$66,400Net income63,20092,600Dividends(29,400) (26,600)Retained earnings (Dec. 31)$166,200$132,400The following additional information is provided:1.2.In 2026, Sunland Inc. decided to switch its depreciation method from sum-of-the-years' digits to the straight-line method. Theassets were purchased at the beginning of 2025 for $107,000 with an estimated useful life of 4 years and no salvage value.(The 2026 income statement contains depreciation expense of $32,100 on the assets purchased at the beginning of 2025.)In 2026, the company discovered that the ending inventory for 2025 was overstated by $21,800; ending inventory for 2026 iscorrectly stated.Prepare the revised retained earnings statement for 2025 and 2026, assuming comparative statements. (Ignore income taxes.)su

Retained earnings statement shows net income earned during the year and payment of dividend.…

Answered: Prepare the revised retained earnings…

Prepare the revised retained earnings statement for 2025 and 2026, assuming comparative statements. (Ignore income taxes.)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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