Current Attempt in Progress The management of Sweet Instrument Company had concluded with the concurrence of its independent auditors, that results of operations would be more fairly presented it Sweet changed its method of pricing inventory from last in, first-out (LJFC) to average cost in 2020. Given below is the 5-year summary of income under LIFO and a schedule of what the inventories would be if stated on the average-cost method SWEET INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31 2016 2017 2018 2019 2020 Sales.net $14,090 $15.580 $16,650 $18,110 $19,040 Cost of goods sold Beginning inventory 1.010 1,100 1.000 1.100 1.230 Purchases 12.940 13.980 14.980 15,840 17,024 Ending inventory (1.100) (1.000) (1.100) (1.230) (1.390) Total 12,850 14,080 14,880 15.710 16,864 Gross profit 1.240 1,500 1.770 2400 2,176 Administrative expenses 690 760 920 900 980 Income before taxes 550 740 950 1.500 1.196 Income taxes (50%) 275 370 475 750 598 Net income 275 370 475 750 598 Retained earnings--beginning 1.200 1.475 1845 2.320 3070 Retained earnings wending $1475 $1.845 $2.320 $3,070 $3.668 Earnings per share $275 $3.70 $4.75 $7.50 $5.98 SCHEDULE OF INVENTORY BALANCES USING AVERAGE-COST METHOD FOR THE YEARS ENDED MAY 31 2015 2016 2017 2018 2019 2020 51.020 51.130 $1,100 $1.250 $1.490 $1.710 Prepare comparative statements for the 5 years, assuming that were changed its method of inventory pricing to average cost Indicate the effects on net income and earnings per share for the years involved. Sweet Instruments started business in 2015, Assume that the number of shares outsanding is 100. (Enter amounts that decrease cost of goods sold using either a negative in preceding the numbers. 15.000 or parentheses (15,000). Round all amounts except EPS to the nearest whole dollars. 5,275. Round Earnings Per Share to 2 decimal places. e. 1.62. Hound up the tax effects to the next whole dollar) SWEET INSTRUMENT COMPANY nings Per Share to 2 decimal places, eg. 1.62. Round up the tax effects to the next Whole 0. SWEET INSTRUMENT COMPANY Statement of Income and Retained Earnings For the Years Ended May 31 2017 2018 2020 2019 $ $ 5 $ $ 5 $ $ c Textbook and Media Submit Answer Attempts: 0 of 3 used