Exercise 22-3 Larkspur Co. decides at the beginning of 2017 to adopt the FIFO method of inventory valuation. Larkspur had used the LIFO method for financial reporting since its inception on January 1, 2015, and had maintained records adequate to apply the FIFO method retrospectively. Larkspur concluded that FIFO is the preferable inventory method because it reflects the current cost of inventory on the balance sheet. The following table presents the effects of the change in accounting principles on inventory and cost of goods sold Inventory Determined by Cost of Goods Sold Determined by LIFO FIFO Method Date Method LIFO Method FIFO Method $ 0 $ 0 $ 0 0 January 1,2015 December 31, 2015 100 850 8 942 910 December 31, 2016 220 240 798 December 31, 2017 1,150 330 370 1,170 Retained earnings reported under LIFO are as follows. Retained Earnings Balance December 31, 2015 $910 December 31, 2016 1,760 December 31, 2017 2,350 Other information: For each year presented, sales are $2,740 and operating expenses are $980. 1. Larkspur provides two years of financial statements. Earnings per share information is not required 2. Prepare income statements under LIFO for 2015, 2016, and 2017. LARKSPUR Co. Income Statement For the Year Ended December 31 LIFO 2016 2017 2015 Prepare income statements under FIFO for 2015, 2016, and 2017. LARKSPUR CO. Income Statement For the Year Ended December 31 FIFO 2016 2015 2017 $ S Prepare income statements reflecting the retrospective application of the accounting change from the LIFO method to the FIFO method for 2017 and 2016 LARKSPUR CO. ent nber 31 For the Year End 2016 2017 LINK TO TEXT Prepare comparative retained earnings statements for 2016 and 2017 under FIFO 2016 2017 Click if you would like to Show Work for this question: Open Show Work