Nash Co decides at the beginning of 2020 to adopt the FIFO method of inventory valuation Nash had used the LIFO method for financial reporting since its inception on January 1, 2018, and had maintained records adequate to apply the FIFO method retrospectively Nash concluded that FIFO is the preferable inventory method because it reflects the current cost of inventory on the balance sheet The following table presents the effects of the change in accounting principles on inventory and cost of goods sold Income taxes are ignored Inventory Determined by Cost of Goods Sold Determined by Date LIFO Method FIFO Method LIFO Method FIFO Method January 1, 2018 $ 0 $ 0 $ 0 $ 0 December 31, 2018 100 8 880 972 December 31, 2019 180 210 900 778 December 31, 2020 290 360 1,030 990 Retained earnings reported under LIFO are as follows Retained Earnings Balance December 31, 2018 $850 December 31, 2019 1,680 December 31, 2020 2,380 1 For each year presented, sales are $2,780 and operating expenses are $1,050 2 Nash provides two years of financial statements Earnings per share information is not required Prepare income statements under LIFO for 2018, 2019, and 2020 NASH CO Income Statement For the Year Ended December 31 LIFO 2018 2019 2020 Prepare income statements under FIFO for 2018, 2019, and 2020 NASH CO Income Statement For the Year Ended December 31 FIFO 2018 2019 2020 Prepare income statements reflecting the retrospective application of the accounting change from the LIFO method to the FIFO method for 2020 and 2019 NASH CO Income Statement For the Year Ended December 31 2019 2020 select an income statement item Prepare comparative retained earnings statements for 2019 and 2020 under FIFO 2019 2020 LessAdd

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Nash Co. decides at the beginning of 2020 to adopt the FIFO method of inventory valuation. Nash had used the LIFO method for financial reporting

Nash Co. decides at the beginning of 2020 to adopt the FIFO method of inventory valuation. Nash had used the LIFO method for financial reporting since its inception on January 1, 2018, and had maintained records adequate to apply the FIFO method retrospectively. Nash concluded that FIFO is the preferable inventory method because it reflects the current cost of inventory on the balance sheet. The following table presents the effects of the change in accounting principles on inventory and cost of goods sold. Income taxes are ignored.

	Inventory Determined by		Cost of Goods Sold Determined by
Date	LIFO Method	FIFO Method	LIFO Method	FIFO Method
January 1, 2018	$ 0	$ 0	$ 0	$ 0
December 31, 2018	100	8	880	972
December 31, 2019	180	210	900	778
December 31, 2020	290	360	1,030	990

Retained earnings reported under LIFO are as follows.

		Retained Earnings Balance
December 31, 2018		$850
December 31, 2019		1,680
December 31, 2020		2,380

1.		For each year presented, sales are $2,780 and operating expenses are $1,050.
2.		Nash provides two years of financial statements. Earnings per share information is not required.

Prepare income statements under LIFO for 2018, 2019, and 2020.

NASH CO. Income Statement For the Year Ended December 31
LIFO
	2018	2019	2020

Prepare income statements under FIFO for 2018, 2019, and 2020.

NASH CO. Income Statement For the Year Ended December 31
FIFO
	2018	2019	2020

Prepare income statements reflecting the retrospective application of the accounting change from the LIFO method to the FIFO method for 2020 and 2019.