Assume that Martinez has a beginning balance of retained earnings at January 1, 2017, of $1,080 using the LIFO method. The company declared and paid dividends of $510 in 2017. Prepare the retained earnings statement for 2017, assuming that Martinez has switched to the FIFO method. (Round answers to 0 decimal places, e.g. 125.)

Presented below are income statements prepared on a LIFO and FIFO basis for Martinez Company, which started operations on January 1, 2016. The company presently uses the LIFO method of pricing its inventory and has decided to switch to the FIFO method in 2017. The FIFO income statement is computed in accordance with the requirements of GAAP. Martinez's profit-sharing agreement with its employees indicates that the company will pay employees 10% of income before profit- sharing. Income taxes are ignored. Sales Cost of goods sold Operating expenses Income before profit-sharing Profit-sharing expense Net income LIFO Basis 2017 2016 $3,110 $3,110 1,140 960 950 950 1,020 1,200 102 120 $918 $1,080 FIFO Basis 2017 2016 $3,110 $3,110 1,060 920 950 950 1,100 1,240 114 120 $986 $1,120