B&G Incorporated decided to change from the FIFO method of valuing inventory to the weighted average method in July 2017. The cumulative effect on prior years of retrospective application of the new inventory costing method was determined to be $15,000 net of $4,000 tax. As prices are decreasing, cost of sales would be lower and ending inventory higher for the preceding period. Retained earnings on January 1, 2017 was $241,000.

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Statement of Retained Earnings (Partial) For the year ended December 31, 2017 December 31, 2017 For the year month December 31, 2017 Adjusted Balance of Retained Earnings, January 1, 2017 Retained Earnings, January 1, 2017, as Previously Reported Net Income (Loss) Cash Dividends Cumulative Effect on Prior Years of Retrospective Application of New Inventory Costing Method