2017 2018 2019

Sales revenue $ 10,800,000 $ 12,120,000 $ 15,600,000

Cost of goods sold:

Beginning inventory $ 8,000,000

Purchases $ 8,080,000 $ 9,720,000 $ 12,000,000

Cost of goods available for sale $ 16,080,000

1.Ending inventory

Cost of goods sold

Gross profit

Operating expense (15% of sales) $ 1,620,000 $ 1,818,000 $ 2,340,000

Depreciation expense $ 300,000 $ 300,000 $ 300,000

Income before taxes

Income tax expense (40%)

2.Net income

3.Earnings per share

4.Cash balance

Beginning balance $ 408,010

Sales proceeds $ 10,800,000

Purchases $ (8,080,000)

Operating expenses $ (1,620,000)

Property, plant, and equipment 350000 350000 350000

Income taxes

Dividends -150000

Ending balance

This is what I've been able to calculate so far for the following problem. I am beyond stuck on calculating these figures. Please help!

Bridgeport Company is considering changing its inventory valuation method from FIFO to LIFO because of the potential tax savings. However, management wishes to consider all of the effects on the company, including its reported performance, before making the final decision.

The inventory account, currently valued on the FIFO basis, consists of 1,000,000 units at $8 per unit on January 1, 2017. There are 1,000,000 shares of common stock outstanding as of January 1, 2017, and the cash balance is $408,010.

The company has made the following forecasts for the period 2017-2019.

2017 2018 2019

Unit sales (in millions of units)1.08 1.01 1.30

Sales price per unit $10 $12 $12

Unit purchases (in millions of units)1.01 1.08 1.2

Purchase price per unit $8 $9 $10

Annual depreciation (in thousands of dollars)$300$300$300

Cash dividends per share$0.15$0.15$0.15

Cash payments for additions to and replacement of

plant and equipment (in thousands of dollars)$350$350$350

Income tax rate40%40%40%

Operating expenses (exclusive of depreciation) as a

percent of sales15%15%15%

Common shares outstanding (in millions)111

(a)Compute the following data for Bridgeport Company under the FIFO and the LIFO inventory method for 2017-2019. Assume the company would begin LIFO at the beginning of 2017.(Enter amounts in thousands. Round earnings per share values to 2 decimal places, e.g. 52.75. Round other answers to 0 decimal places, e.g. 125.)

(1)Year-end inventory balances.

(2)Annual net income after taxes.

(3)Earnings per share.

(4)Cash balance.

Assume all sales are collected in the year of sale and all purchases, operating expenses, and taxes are paid during the year incurred.