Problem 22-1 The management of Dlue Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Blue changed its method of pricing inventory from last-in, first-out (LIFO) to average-cost in 2017. Given below is the S-year summary of income under LIFO and a schedule of what the inventories would be if stated on the average-cost method. BLUE INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31 20132015 2016 2017 502015 Sales-net $13,840 s15,660 16,660 ?18,150 19,090 f goods sold Deginning inventory ost 1,000 1,010 13,990 15,050 1,110 1,230 15,940 16,729 1,090 13,030 Ending inventory (1,090 (1,010) 110) (1,230) (50) 15,820 16,609 2,481 14 070 1,590 760 830 415 415 Total 12,940 14,950 Gross profit 900 700 200 100 100 Retained earnings-beginning 1,190 1,290 1,705 2,145 1,710 830 880 440 440 2,330 910 1,420 710 710 Income before taxes Income taxes (50%) Net income 1,491 746 745 2,855 $1,290 $1,70S $2,145 $2,855 $3,600 $7.45 Retained earnings-ending Earnings per share $1.00 $4.15 $4.40 $7.10 SCHEDULE OF INVENTORY BALANCES USING AVERAGE-COST METHOD FOR THE YEARS ENDED MAY 31 2012 2013 2014 2015 2016 2017 $1,010 $1,110 $1,120$1,260 $1,490 1,700 Prepare comparative statements for the 5 years, assuming that Blue changed its method of inventory pricing to average-cost. Indicate the effects on net income and earnings per share for the years involved. Blue Instruments started busincss in 2012. (Enter amounts that decrease cost of goods sold using cither a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000). Round all