Armstrong Ltd. has used the average cost (AC) method to determine inventory values since the company was first formed in 20X3. In 20X7, the company decided to switch to the FIFO method, to conform to industry practice. Armstrong will still use average cost for tax purposes. The tax rate is 30%. The following data have been assembled:

		20X3				20X4				20X5				20X6				20X7
Net income, as reported, after tax	$	64,000	*		$	75,400	*		$	250,100	*		$	294,900	*		$	142,600	**
Closing inventory, AC		40,100				52,200				64,800				105,300				132,200
Closing inventory, FIFO		46,900				66,100				60,000				97,200				148,200
Dividends		5,800				8,100				8,100				11,400				16,000

*Using the old policy, average cost
**Using the new policy, FIFO.

Required:
Prepare the comparative retained earnings section of the statement of changes in shareholders’ equity for 20X7, reflecting the change in accounting policy.

	2017	2016
Opening Retained Earnings, January 1
Cumulative effect of a change in accounting principles
Opening Retained Earnings restated
Earnings
Dividends
Closing Retained earnings, December 31