J&S Arnez Company began operations in $2021$ and initially adopted the weighted$-$average method for inventory valuation. In $2023,$ in accordance with the inventory valuation policies

followed by other companies in its industry, Arnez changed its inventory pricing to the FIFO method. The company still uses the weighted$-$average method of inventory valuation for

income tax purposes. The pretax income data is reported as follows.

Use the blue shaded areas on the ENTERANSWERS tab for inputs.

Always use cell references and formulas where appropriate to receive full credit. If you copy$/$paste from the Instructions tab you will be marked wrong.

Requirements

$1$ What is J&S Arnez's net income in $2023?$

$2$ Compute the cumulative effect on retained earnings from the change in accounting principle from weighted average to FIFO pricing $($up to but not including the year of the change$).$

a$.$ Use cell references from prior calculations, if applicable.

b$.$ Enter all amounts as positive values. Do not use a minus sign or parentheses for amounts to be subtracted.

$3$ Show condensed, comparative income statements for J&S Arnez Company, beginning with income before taxes, as presented on the $2023$ income statement.

a$.$ Use cell references from prior calculations, if applicable.

b$.$ Enter all amounts as positive values. Do not use a minus sign or parentheses for amounts to be subtracted.

Saving & Submitting Solution

$1$ Save file to desktop.

a$.$ Create folder on desktop, and label COMPLETED EXCEL PROJECTS

$2$ Upload and submit your file to be graded.

a$.$ Navigate back to the activity window $-$ screen where you downloaded the initial spreadsheet

b$.$ Click Choose button under step $3$; locate the file you just saved and click OpenWhat is J&S Arnez's net income in $2023?$

$($Always use cell references and formulas where appropriate to receive full credit. If you copy$/$paste from the Instructions tab you will be marked

wrong.$)$

$2023$ Net Income

Compute the cumulative effect on retained earnings from the change in accounting principle from weighted average to FIFO pricing $($up to but not

including the year of the change$).$

$($Always use cell references and formulas where appropriate to receive full credit. If you copy$/$paste from the Instructions tab you will be marked

wrong. Use cell references from prior calculations, if applicable.$)$

Show condensed, comparative income statements for J&S Arnez Company, beginning with income before taxes, as presented on the $2023$ income

statement.

$($Always use cell references and formulas where appropriate to receive full credit. If you copy$/$paste from the Instructions tab you will be marked

wrong. Use cell references from prior calculations, if applicable.$)$