*Exercise 22-3 Swifty Co. decides at the beginning of 2017 to adopt the FIFO method of inventory valuation. Swifty 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. Swifty 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 LIFO Cost of Goods Sold Determined by FIFO FIFO Method Date January 1, 2015 December 31, 2015 December 31, 2016 December 31, 2017 Method MethodLIFO Method 90 200 310 9 250 380 810 990 1,210 891 859 1,190 Retained earnings reported under LIFO are as follows Retained Earnings Balance December 31, 2015 December 31, 2016 December 31, 2017 $1,150 2,120 2,870 Other information: For each year presented, sales are $2,900 and operating expenses are $940 Swifty provides two years of financial statements. Earnings per share information is not required. 1. 2. Prepare income statements under LIFO for 2015, 2016, and 2017. SWIFTY CO Income Statement For the Year Ended December 31 LIFO 2015 2016 2017