Presented below are income statements prepared on a LIFO and FIFO basis for Vaughn Company, which started operations on January 1, 2016. The company presently uses the LIFO method of pricing its inventory and has decided to switch to the FIFO method in 2017. The FIFO income statement is computed in accordance with the requirements of GAAP. Vaughns 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 2017 2016 2017 2016 Sales $2,960 $2,960 $2,960 $2,960 Cost of goods sold 1,110 970 1,130 910 Operating expenses 990 990 990 990 Income before profit-sharing 860 1,000 840 1,060 Profit-sharing expense 86 100 90 100 Net income $774 $900 $750 $960 Answer the following questions. If comparative income statements are prepared, what net income should Vaughn report in 2016 and 2017? (Round answers to 0 decimal places, e.g. 125.) 2017 2016 Net income $ $ LINK TO TEXT Assume that Vaughn has a beginning balance of retained earnings at January 1, 2017, of $900 using the LIFO method. The company declared and paid dividends of $470 in 2017. Prepare the retained earnings statement for 2017, assuming that Vaughn has switched to the FIFO method. (Round answers to 0 decimal places, e.g. 125.) VAUGHN COMPANY Retained Earnings Statement $ : : $