How do you calcualte the net income of the following information?

Lee Corporation, a U.S. company, began operations on January 1, 2004.
During its first 3 years of operations, Lee reported net income and declared dividends as follows.

Net income Dividends declared
2004 $ 40,000 $ –0–
2005 125,000 50,000
2006 160,000 50,000

The following information relates to 2007:

Income before income tax $240,000
Prior period adjustment: understatement of 2005 depreciation expense (before taxes) $ 25,000
Cumulative decrease in income from change in inventory methods (before taxes) $ 35,000
Dividends declared (of this amount, $25,000 will be paid on January 15, 2008) $100,000
Effective tax rate 40%

Lee Corporation
Retained Earnings Statement
For the Year Ended December 31, 2007
Balance, January 1, as reported $225,000*
Correction for depreciation error (net of $10,000 tax) (15,000)
Cumulative decrease in income from change in
inventory methods (net of $14,000 tax)
(21,000)
Balance, January 1, as adjusted 189,000
Add: Net income 144,000**
333,000
Less: Dividends declared 100,000
Balance, December 31 $233,000
*($40,000 + $125,000 + $160,000) – ($50,000 + $50,000)
**[$240,000 – (40% X $240,000)]

Common stock $500
Treasury stock (-$200)
Additional paid-in principle $1000
Shares outstanding 375,940
Shares authorized 500,000
Shares in treasury 30,000
Multiply 1000 to the dollar amounts of stock.

Please always start your own thread instead of tagging onto someone else's and do not duplicate post. I've deleted your duplicate.

I don't understand what your question is. The net income of 144,000 is already in there.