Exercise 228-3 Metlock Co. decides at the beginning of 2017 to adopt the FIFO method of Iinventory valuation. Metlock had uned the LIro method for financial reperting since its inception on January 2015, and had maintained records adequate to apply the FIFO method retrospectively. Metlock concluded thest FIFO is the preferable inventory method because it reflects the current co 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 Cost of Goods Sold Determined by FIFO Date lanuary 1, 2015 December 31, 2015 December 31, 2016 December 31, 2017 Method MethodLIFO Method FIFO Method s 0 100 210 340 s o s 0 850 s o 942 848 1,210 250 390 1,220 Retained earnings reported under LIFO are as follows Retained Earnings Balance December 31, 201S December 31, 2016 December 31, 2017 $960 1,790 2,380 Other information 1. 2. For each year prosented, sales are $2,780 and operating expenses are $970 Metlock provides two years of financlal statements. Earnings per share information is not required Prepare income statements under LIFO for 2015, 2016, and 2017 Plo i c 200. 2019 ht nitky ASais.1% All Rights Reserved. A Div sion of Julin ele.ASonunc