Current Attempt in Progress Bonita Co. decides at the beginning of 2022 to adopt the FIFO method of inventory valuation. Bonita had used the average-cost method for financial reporting since its inception on January 1, 2022, and had maintained records adequate to apply the FIFO method retrospectively. Bonita concluded that FIFO is the preferable inventory method because it reflects the current cost of inventory on the statement of financial position. The following table presents the effects of the change in accounting policy on inventory and cost of goods sold. Inventory Determined by Cost of Goods Sold Determined by Date LIFO Method FIFO Method LIFO Method FIFO Method January 1, 2020 $0 $0 $0 $0 December 31, 2020 100 790 800 December 31, 2021 200 260 900 830 December 31, 2022 320 390 1,020 1,010 Retained earnings reported under average-cost are as follows. Retained Earnings Balance December 31, 2020 $1,290 December 31, 2021 2,470 December 31, 2022 3,530 Other information: 1. For each year presented, sales are $3,110 and operating expenses are $1,030. 2. Bonita provides two years of financial statements. Omit earnings per share. Prepare income statements under average cost for 2020, 2021, and 2022. $ BONITA CO. Income Statement Average Cost 2020 2021 2022 $ Prepare income statements under FIFO for 2020, 2021, and 2022. BONITA CO. Income Statement 2020 FIFO 2021 2022