NEED ANSWERS TO RED BOXES + ** CALCULATIONS **

NOTE: THE ANSWERS IN RED BOXES BELOW ARE WRONG

THESE RED BOXES ARE WRONG AND SO ARE THE SET BELOW:

Exercise 22-5 Presented below are income statements prepared on a LIFO and FIFO basis for Kenseth Company, which started operations on January 1, 2013. The company presently uses the LIFO method of pricing its inventory and has decided to switch to the FIFO method in 2014. The FIFO income statement is computed in accordance with the requirements of GAAP. Kenseth's profit-sharing agreement with its employees indicates that the company will pay employees 5% of income before profit sharing. Income taxes are ignored. FIFO Basis LIFO Basis 2014 2013 2014 2013 $3,800 $3,800 $3,800 $3,800 Sales Cost of goods sold 1,117 1,047 1,100 903 1,200 1,200 1,200 1,200 operating expenses Income before profit-sharing 1,483 1,553 1,500 1,697 74 78 75 85 Profit-sharing expense $1,409 $1,475 $1,425 $1,612 Net income Your answer is correct. If comparative income statements are prepared, what net income should Kenseth report in 2013 and 2014? (Round answers to decimal places, e.g. 125.) 2014 2013 Net income 1418 1619