Presented below are income statements prepared on a LIFO and FIFO basis for Pronghorn Company, which started operations on January 1, 2016. The company presently uses the LIFO method of pricing Its Inventory and has declded to switch to the FIFO method In 2017. The FIFO Income statement Is computed In accordance with the requlrements of GAAP. Pronghorn's profit-sharing agreement with its employees indicates that the company will pay employees 10% of income before profit sharing. Income taxes are ignored LIFO Basis FIFO Basis 2016 $3,000 3,000 $3,000 3,000 950 1,030 1,030 1,030 1,030 840 1,020 94 926 2017 2016 2017 Sales Cost of goods sold Operating expenses Income before profit-sharing Profit-sharing expense Net income 1,15 030 ,130 820 82 $738 940 94 $846 $748 Answer the following questions. If comparatve Income statements are prepared, what net Income should Pronghorn report in 2016 and 2017? (Round answers to o declmal places, e.g. 125.) 2017 2016 Net income Assume that Pronghorn has a beginning balance of retained earnings at January 1, 2017, of $846 using the LIFO method. The company declared and paid dividends of $520 in 2017. Prepare the retained earnings staternent tor 2017, assuming that Pronghorn has switched to the FIFO method. (Round answers to 0 decimal places, e.g. 125.) PRONGHORN COMPANY Retained Earnings Statement