5 6 *P8-10 (Financial Statement Effects of FIFO and LIFO) The management of Tritt Company has asked its accounting department to describe the effect upon the company's financial position and its income statements of accounting for inventories on the LIFO rather than the FIFO basis during 2015 and 2016. The accounting department is to assume that the change to LIFO would have been effective on January 1, 2015, and that the initial LIFO base would have been the inventory value on December 31, 2014. Presented below are the com- pany's financial statements and other data for the years 2015 and 2016 when the FIFO method was employed. Financial Position as of 12/31/14 12/31/15 12/31/16 Inventory $120,000 $140,000 $ 176,000 Other assets 160,000 170,000 200,000 Accounts receivable 80,000 100,000 120,000 Cash 90,000 130,000 154,000 Total assets $450,000 $540,000 $ 650,000 Share capital-ordinary $200,000 $200,000 $ 200,000 Retained earnings 140,000 200,000 260,000 Accounts payable 40,000 60,000 80,000 Other liabilities 70,000 80,000 110,000 Total equity and liabilities $450,000 $540,000 $ 650,000