Exercise 22-5 Presented below are income statements prepared on a LIFO and FIFO basis for Riverbed 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. Riverbed'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 Cost of goods sold Operating expenses Income before profit-sharing Profit-sharing expense Net income $2,960 $2,960 $2,960 $2,960 910 990 1,060 100 $960 1,110 990 860 86 $774 970 990 1,000 100 $900 1,130 990 840 90 $750 Answer the following questions If comparative income statements are prepared, what net income should Riverbed report in 2016 and 2017? (Round answers to 0 decimal places, e.g 125.) 2017 2016 Net income Assume that Riverbed has a beginning balance of retained earnings at January 1, 2017, of $900 using the LIFO method. The company declared and paid dividends of s470 in 2017. Prepare the retained earnings statement for 2017, assuming that Riverbed has switched to the FIFO method. (Round answers to o decimal places,e.g. 125.) RIVERBED COMPANY Retained Earnings Statement