Lopez Company is considering changing its inventory valuation from LIFO to FIFO. Management of the company wants to consider all of the effects on the company, including its reported performance, before making the final decision. As of January 1, 20x1, the inventory account is valued on the LIFO basis, consisting of 1,000,000 units at $8 per unit. Also, as of 1/1/x1, the cash balance is $400,000 and there are 1,000,000 shares of common stock outstanding- The company has made the following forecasts for the period 20x1 through 20x3. 20x1 20x2 20x3 1.1 $11 1.0 $8.5 $300 $0.25 1.1 $12 1.1 $9.5 $325 $0.25 1.4 $14 1.2 $11 $350 $0.25 Unit sales (in millions of units) Sales price per unit Unit purchases (in millions of units) Purchase price per unit Annual depreciation (in thousands of dollars) Cash dividends paid per share Cash payments for additions to and replacement of plant and equipment (in thousands of dollars) Income tax rate Operating expenses (exclusive of depreciation) as a percent of sales Common shares outstanding (in millions) $400 40% $400 40% $400 40% 13% 1 14% 1 15% 1 REQUIRED: [a] Prepare a schedule that illustrates and compares the following data for Lopez Company under the LIFO and FIFO inventory methods for 20x1 - 20x3. Assume the company would begin FIFO at the beginning of 20x1. (Prepare the schedule using EXCEL) 1) Year-end inventory balances, at cost. 2) Annual net income after taxes. 3) Earnings per share. 4) Cash balance at year end (A separate schedule can be prepared for this item.) Assume all sales are collected in the year of sale and all purchases, operating expenses, and taxes are paid during the year incurred. [bUsing the data above, your answer to fal, and any additional issues you believe need to be considered, prepare a report that recommends whether or not Lopez Company should change to the FIFO method. Support your conclusions with appropriate arguments