Exercise 22-5 Presented below are income statements prepared on a LIFO and FIFO basis for Cheyenne 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. Cheyenne'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 $3,000 $3,000 $3,000 $3,000 Cost of goods sold 1,150 1,130 950 Operating expenses 1,030 1,030 1,030 1,030 Income before profit-sharing 820 940 840 1,020 Profit-sharing expense 82 94 92 94 Net income $738 $846 $748 $926 1,030 Answer the following questions. If comparative income statements are prepared, what net income should Cheyenne report in 2016 and 2017? (Round answers to o decimal places, e.g. 125.) 2017 2016 Net income $ Assume that Cheyenne has a beginning balance of retained earnings at January 1, 2017, of $846 using the LIFO method. The company declared and paid dividends of $520 in 2017. Prepare the retained earnings statement for 2017, assuming that Cheyenne has switched to the FIFO method. (Round answers to o decimal places, e.g. 125.) CHEYENNE COMPANY Retained Earnings Statement $