Both the management of Pharoah Instrument Corporation, a small company that follows IFRS, and its independent auditors recently concluded that the company's results of operations will be reliable and more relevant in future years if Pharoah changes its method of costing inventory from FIFO to weighted average cost. The following data are a five-year income summary using FIFO and a schedule of what the inventories might have been if they had been stated using the weighted average cost method. Pharoah Instrument Corporation Statement of Income and Retained Earnings for the Years Ended May 31 2019 2020 2021 2022 2023 $15,081 $16.746 $18,007 $19.679 $20,410 Sales-net Cost of goods sold Beginning inventory 1,080 1,188 1,080 1,204 1,336 Purchases 14.040 15,012 16,200 17.172 18.468 Ending inventory (1.188) (1,080) (1,204) (1,336) (1.479) Total 13,932 15,120 16,076 17.040 18.325 Gross profit 1,149 1.626 1.931 2,639 2.085 Administrative expenses 756 824 899 980 1,068 Income before taxes 393 802 1,032 1,659 1.017 Income taxes (30%) 118 241 310 498 305 Net income 275 561 722 1,161 712 Retained earnings-beginning 1,302 1.577 2.138 2.860 4.021 Retained earnings-ending $1,577 $2.138 $2,860 $4,021 $4.733 Earnings per share $2.75 $5.61 $7.22 $11.61 $7.12 Pharoah Instrument Corporation Schedule of Inventory Balances Using Average Cost Method Year Ended May 31 2018 2019 2020 2021 2022 2023 $1,026 $1.214 $1,178 $1,372 $1.598 $1,835