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.. Morey, Inc. began operations January 1, 2017. During 2019, management changed its method of accounting for inventories from the average-cost method to the first-in, first- out (FIFO) method. This change is effective as of January 1, 2019. If cost of goods sold had been determined under each of these two methods for all years of operation, the results would have been: (Click the icon to view the results.) The company's income statements as reported under average cost before implementing the accounting change for 2019, 2018, and 2017 follow. The income tax rate for Welsh is 45%. Morey will continue to use average cost for income tax reporting. (Click the icon to view the company's income statements.) Requirement a. Prepare the comparative income statements for Morey after the change to FIFO. Morey, Inc. Comparative Income Statements For the Years Ended December 31 2019 2018 2017 Sales Cost of Goods Sold Operating Expenses Income before Tax Tax Expense (45%) Net Income after Tax Data table Cost of Goods Sold 2019 2018 2017 Average cost $ 143,500 $ 110,000 $ 127,000 FIFO 140,000 76,000 81,000 Data table Morey, Inc. Comparative Income Statements For the Years Ended December 31 2019 2018 2017 Sales 578,000 $ 490,000 $ 380,000 Cost of Goods Sold (143,500) (68,500) (110,000) (46,500) (127,000) (24,500) Operating Expenses Income before Tax 366,000 $ (164,700) 333,500 $ (150,075) 228,500 (102,825) Tax Expense (45%) 201,300 $ 183,425 $ 125,675 Net Income after Tax Requirements a. Prepare the comparative income statements for Morey after the change to FIFO. b. Determine the after-tax cumulative effect in the retained earnings balance for the first balance sheet presented (i.e., at December 31, 2018). Morey presents comparative balance sheets