Cambi Company began operations on January 1, 2016. In the second quarter of 2017, it adopted the FIFO method of inventory valuation. In the past, it used the LIFO method. The company's interim income statements as originally reported under the LIFO method follow:

If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows:

Sales for the second quarter of 2017 are $20,000, cost of goods sold under the FIFO method is $9,000, and operating expenses are $3,400. The effective tax rate remains 40 percent. Cambi Company has 1,000 shares of common stock outstanding.
Prepare a schedule showing the calculation of net income and earnings per share that Cambi reports for the three-month period and the six-month period ended June 30, 2017.

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2016 2017 1stQ 2ndQ 3rdQ 4thQ 1stQ Sales $10,000 $12,000 $14,000 $16,000 $18,000 Cost of goods sold LIFO) Operating expenses Income before Income 4,000 2,000 5,000 2,200 5,800 2,600 7,000 3,000 8,500 3,200 $4,000 4,800 $5,600 $ 6,000 6,300 2,520 $ 2,400 2,880 3,360 $3,600 3,780 taxes Income taxes (40%) 1,600 1,920 2,240 2,400 Net Income 2017 1stQ Cost of goods sold (FIFO 3,800 4,600 $5.200 $ 6,000 $7,400 2016 1stQ 2ndQ 3rdQ 4thQ