= Homework: Week Four Question 19, E21-3 (similar to) Part 1 of 4 HW Score: 4.76%, 1 of 21 points Points: 0 of 1 Save Selby Stores began operations on January 1, 2014, and adopted the average-cost method of accounting. In 2017, it is considering a change to the FIFO basis. Selby provided the following information to assist in deciding whether to change inventory valuation techniques. (Click the icon to view the additional information.) Selby Stores reported the following income statement information: (Click the icon to view income statement.) Read the requirements. Requirement a. Prepare the income statements under both methods for the years ended December 31, 2014, through December 31, 2016. Begin by preparing the income statements under the average-cost method for 2014 through 2016. Sales Statement of Net Income Average-Cost Method 2016 2015 2014 Cost of goods sold Gross profit Selling, general, and administrative expenses Income before tax Tax expense Net income (loss) Help me solve this Etext pages Get more help - Type here to search Bi Income statement Account 2017 2016 2015 Sales revenue $ 250,000 $ 172,000 $ 2014 166,000 $ 148,000 Selling, general, and administrative expenses $ Income tax rate 54,700 $ 30 % 50,000 $ 30 % 36,400 $ 30 % 31,500 30% Change in inventory valuation Year Ended Ending Inventory Average Cost Cost of Sales Retained Earnings Average FIFO Cost FIFO Average Cost FIFO 12/31/2014 $ 9,000 $ 18,500 $ 76,100 $ 74,600 $ 23,300 $ 24,700 12/31/2015 15,000 26,700 82,200 79,000 48,700 51,100 12/31/2016 25,600 28,300 95,100 91,300 72,500 79,800 12/31/2017 31,000 43,000 102,000 89,900 96,100 112,100 68F Cloudy 12:52 PM 2/3/2022