Reference no: EM132459224

Question 1 Blue Corporation began operations on January 1, 2017. During its first 3 years of operations, Blue reported net income and declared dividends as follows:
                                      Net Income            dividends declared
2017                             $43,800                      $-0
2018                              34,500                    51,300
2019                            162,400                    52,500

The following information relates to 2020.

Income before income tax                                                                                 5238.800

Prior period adjustment understatement of 2018 depreciation expense (before taxes)   525.400

Cumulative decrease in income from change in inventory methods (before taxes)         543300

Dividends ded ared (of this amount. 525.400 will be paid on Jan. 15. 2021)                5103.800

Effective tax rate                                                                                                20 %

The following information relates to 2020.

Question 1: How would I create a retained earnings statement?