Presented below are income statements prepared on a LIFO and FIFO basis for Blossom Company, which started operations on January 1, 2019. The company presently uses the LIFO method of pricing its inventory and has decided to switch to the FIFO method in 2020. The FIFO income statement is computed in accordance with the requirements of GAAP. Blossoms 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
		2020		2019		2020		2019
Sales		$3,130		$3,130		$3,130		$3,130
Cost of goods sold		1,140		1,040		1,150		990
Operating expenses		1,000		1,000		1,000		1,000
Income before profit-sharing		990		1,090		980		1,140
Profit-sharing expense		99		109		103		109
Net income		$891		$981		$877		$1,031

Answer the following questions.

If comparative income statements are prepared, what net income should Blossom report in 2019 and 2020? (Round answers to 0 decimal places, e.g. 125.)

		2020		2019
Net income		$enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places

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Assume that Blossom has a beginning balance of retained earnings at January 1, 2020, of $981 using the LIFO method. The company declared and paid dividends of $510 in 2020. Prepare the retained earnings statement for 2020, assuming that Blossom has switched to the FIFO method. (Round answers to 0 decimal places, e.g. 125.) BLOSSOM COMPANY Retained Earnings Statement