Exercise 22-5 (Part Level Submission)

Presented below are income statements prepared on a LIFO and FIFO basis for Sheffield Company, which started operations on January 1, 2016. The company presently uses the LIFO method of pricing its inventory and has decided to switch to the FIFO method in 2017. The FIFO income statement is computed in accordance with the requirements of GAAP. Sheffield's profit-sharing agreement with its employees indicates that the company will pay employees 10% of income before profit-sharing. Income taxes are ignored.

LIFO Basis

FIFO Basis

2017

2016

2017

2016

Sales$3,070$3,070$3,070$3,070Cost of goods sold1,0909901,090970Operating expenses970970970970Income before profit-sharing1,0101,1101,0101,130Profit-sharing expense101111103111Net income$909$999$907$1,019

Answer the following questions.

(a)

If comparative income statements are prepared, what net income should Sheffield report in 2016 and 2017?(Round answers to 0 decimal places, e.g. 125.)

2017

2016

Net income$

$