FergusonCo. decides at the beginning of 2019 to adopt the FIFO method of inventory valuation. Fergusonhad used the average-cost method for financial reporting since its inception on January 1, 2017, and had maintained records adequate to apply the FIFO method retrospectively. Fergusonconcluded that FIFO is the preferable inventory method because it reflects the current cost of inventory on the statement of financial position. The following table presents the effects of the change in accounting policy on inventory and cost of goods sold. Inventory Determined by Cost of Goods Sold Determined by DateAverage-Cost Method FIFO MethodAverage-Cost MethodFIFO MethodJanuary 1, 2017PPPPDecember 31, 201710080800820December 31, 20182002401,000940December 31, 20193203901,1301,100The balance of retained earningson December 31, 2017, 2018, and 2019, is P2,200, P4,200; and P6,070, respectively. For each year presented, sales are P4,000 and operating expenses are P1,000.Fergusonprovides two years of financial statements. Earnings per share information is not required

Required:

a.Prepare income statements under average-cost and FIFO for 2017, 2018, and 2019.