In 2024, Michael Company began operations and used the FIFO inventory method. At the beginning of 2025 , Michael switched to the average-cost method. How would this change be reported in Michael's 2025 comparative financial statements? in the retained earnings statement as an adjustment to the beginning balance of 2025 retained earnings in the balance sheet as an adjustment to ending 2025 inventory balance in the retained earnings statement as an adjustment to the beginning balance of 2024 retained earnings in the income statement as an adjustment to 2025 cost of goods sold