Pina Co$.$ decides at the beginning of $2025$ to adopt the FIFO method of inventory valuation. Pina had used the LIFO method for

financial reporting since its inception on January $1,2023,$ and had maintained records adequate to apply the FIFO method

retrospectively. Pina concluded that FIFO is the preferable inventory method because it reports 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.

Other information:

For each year presented, sales are $$2,780$ and operating expenses are $$1,010.$

Pina provides two years of financial statements. Earnings per share information is not required.

Prepare comparative retained earnings statements for $2024$ and $2025$ under FIFO. Retained earnings reported under LIFO are as

follows: