Problem 22-01 The management of Tamarisk Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented i Tamarisk changed its method of pricing Inventory from last-in, first-out (LIFO) to average cost in 2020. Given below is the 5-year summary of income under LIFO and a schedule of what the inventories would be if stated the average-cost method. TAMARISK INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31 2016 2017 2018 2019 2020 Sales-net $13,960 $15,660 $16,810 $18,060 $18,940 Cost of goods sold Beginning inventory 1,010 1,110 990 1,100 1,230 Purchases 12,910 13,880 14,860 15,940 17,175 Ending Inventory (1,110) (990) (1.100) (1,230) (1,380) Total 12,810 14,000 14,750 15,810 17,025 Gross profit 1,150 1,660 2,060 2,250 1,915 Administrative expenses 690 770 840 910 1,000 Income before taxes 460 890 1,220 1,340 915 Income taxes (50%) 445 670 Net Income 445 610 670 Retained earnings-beginning 1,200 1,430 1,875 Retained earnings- ending $1.430 $1,875 $2,485 $3,155 $3,612 Earnings per share $2.30 $6.10 $6.70 $4.52 610 230 2.30 SCHEDULE OF INVENTORY BALANCES USING AVERAGE-COST METHOD FOR THE YEARS ENDED MAY 31 2015 2016 2017 2013 2019 2020 $1,020 $1,130 $1,090 $1,260 $1,490 $1,720 Prepare comparative statements for the 5 years, assuming that Tamaris changed its method of inventory pricing to average-cost. Indicate the effects on net income and earnings per share for the years Involved. Tamarisk Instruments started business in 2015. Assume that the number of shares outsanding is 100,(Enter amounts that decrease cost of goods sold using either a negative sign TAMARISK INSTRUMENT COMPANY Statement of Income and Retained Earnings For the Years Ended May 31 2017 2018 2016 2019 2020 $ Sales-net Cost of goods sold Beginning inventory Purchases Ending Inventory Total Gross profit Administrative expenses Income before taxes Income taxes Net Income Retained earnings-beginning: As originally reported Adjustment As restated Retained earnings-ending Earnings per share Click if you would like to Show Work for this question: Open Show Work