Koopman Company began operations on January 1, 2015, and uses the FIFO inventory method for financial reporting and the average cost inventory method for income taxes. At the beginning of 2017, Koopman decided to switch to the average cost inventory method for financial reporting. It had previously reported the following financial statement information for 2016: KOOPMAN COMPANY Income Statement For the Year Ended December 31, 2016 1 Revenues $100,000.00 2 Cost of goods sold (60,000.00) 3 Gross profit $40,000.00 4 Operating expenses (25,000.00) 5 Income before income taxes $15,000.00 6 Income tax expense (4,500.00) 7 Net income $10,500.00 8 Earnings per share $1.05 KOOPMAN COMPANY Retained Earnings Statements For Year Ended December 31, 2016 1 Beginning retai