please answer a. and b. Question b. should be similar to one of the answers in a.

a.

Exercise 4- 1 5 The Flint Corporation, a private company, began ope rations on January 1, 2014. During its rst three years of operations, Flint reported net income and declared dividends as follows: Net Income Dividends declared 2014 $50,000 $0 2015 130,000 50,000 2016 151,000 50,000 The following information is for 201?: Income before income tax $320,000 Prior period adjustment: understatement of 2015 depreciation expense (before tax) 52,000 Cumulative increase in prior years\" income from change in inventory method (before tax) 32,000 Dividends declared (of this amount, $25,000 will be paid on January 15, 2013) 100,000 Effective tax rate 40% Prepare a 201? statement of retained earnings for Flint Corporation. The company follows ASPE. (List items that Increase retained earnings first.)