During 2011 (its first year of operations) and 2012, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2013, Batali decided to change to the average method for both financial reporting and tax purposes. Income components before income tax for 2013, 2012, and 2011 were as follows ($ in millions): 2013 2012 2011 Revenues $ 420 $ 390 $ 380 Cost of goods sold (FIFO) (46 ) (40 ) (38 ) Cost of goods sold (average) (62 ) (56 ) (52 ) Operating expenses (254 ) (250 ) (242 ) Dividends of $20 million were paid each year. Batalis fiscal year ends December 31. Required: 1. Prepare the journal entry at the beginning of 2013 to record the change in accounting principle. (Ignore income taxes.) (If no entry is required for a particular event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Record the change in accounting principle. 2. Prepare the 20132012 comparative income statements. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) 3. Determine the balance in retained earnings at January 1, 2012, as Batali reported previously using the FIFO method. (Enter your answer in millions.) 4. Determine the retained earning balances that Batali would include in the 20132012 comparative statements of retained earnings. (Enter your answers in millions.)