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Additional Problem 9 Presented below is information which relates to Sheridan Lid., a Canadian private company. Net loss $118,000 Retained earnings, January 1, 2017 334,000 Cash dividends declared on common shares 67,000 Understatement of net income resulting from 2016 inventory error (pre-tax) 86,000 Prepare in good form, a statement of retained earnings for the year ended December 31, 2017. The tax rate is 20%. ( List items that increase retained earnings first.) Sheridan LTD. Statement of Retained Earnings Year Ended December 31, 2017 Balance, January 1, as Reported 334,000 Correction for Understatement of Net Income Resulting from Inventory Error 68,800 Balance, January 1, as Adjusted 402,800 Less v Net Income / (Loss) 118,000 Cash Dividends 67,000 185,000 Balance, December 31 V 217,800