ACTG 4650 New Assignment 7 Due December 4 A) Company A has the following income statement information for the years 2015-2017: 2015 Income Statement as 2017 Income Statement 2016 Income Statement as 12.500,000 7.250.000 Sales 10,000,000 Cost of Goods Sold 6,200,000 3,800,000 Operating Expenses 2100,000 17,000,000 10,260,000 6,740,000 2.8350003,212000 Gross Profit 5,250,000 Income from .700,000 Non-Operating Items (220,000) Operations 2.415,000 3,521.000 249-0001 3.272,000 2,454,000 Income from Continuing Operations 2.244,000 1.480,000 370,000 1110,000 Income Tax Expense Net Income 1,683,000 During 2017, Company A changed its inventory method from weighted-average to FIFO. This change brought Hogan's accounting into line with other companies in the industry and was approved by their auditor, Company A will continue to use the weighted-average method for tax purposes. Cost of Goods Sold under FIFO would have been $5.800,000 for 2015 and $6,900,000 for 2016 For years prior to 2015, the change would have increased income from continuing operations by a total of $3.200.000. Company A is a calendar year company. Assume a tax rate of 25% for all years. Required: Prepare in good form the complete 2017 Income Statement showing 2015 and 2016 Income Statements for comparative purposes. Additionally. prepare the retained earnings portion of the Statement of Stockholder's equity for these comparative statements. (The retained earnings balance on January 1, 2015 was $3,654,000) Assume Company A declared and paid $100,000 of cash dividends each year 2015-2017