Question 7 of 8 < the average-cost method. Splish Instrument Company Statement of Income and Retained Earnings For the Years Ended May 31 2021 2022 2023 2024 2025 Sales revenue-net $14,090 $15,380 $16,810 $18,280 $18,760 Cost of goods sold Beginning inventory 1,010 1,100 990 1,110 1,220 Purchases 13,080 13,830 14,900 15,910 17,448 Ending inventory (1,100) (990) (1,110) (1,220) (1,350) Total D 12,990 13,940 14,780 15,800 17,318 Gross profit 1,100 1,440 2,030 2,480 1,442 Administrative expenses 700 770 840 900 980 Income before taxes 400 670 1,190 1,580 462 Income taxes (50%) 200 335 595 790 231 Net income 200 335 595 790 231 Retained earnings-beginning 1,200 1,400 1,735 2,330 3,120 Retained earnings-ending $1,400 $1,735 $2,330 $3,120 $3,351 Earnings per share $2.00 $3.35 $5.95 $7.90 $2.31 Schedule of Inventory Balances Using Average-Cost Method For the Years Ended May 31 2020 2021 2022 2023 2024 2025 $1,020 $1,130 $1,110 $1,260 $1,480 $1,700 -/5 E : Prepare comparative statements for the 5 years, assuming that Splish changed its method of inventory pricing to average-cost. Indicate the effects on net income and earnings per share for the years involved. Splish Instruments started business in 2020. (Enter amounts that decrease cost of goods sold using either a negative sign preceding the number e.g. -15,000 or parentheses eg. (15,000). Round all amounts except EPS to the nearest whole dollar, e.g. 5,275. Round Earnings Per Share to 2 decimal places, eg. 1.62. Round up the tax effects to the next whole dollar.) 65F 2021 Partly sunny $ SPLISH INSTRUMENT COMPANY Statement of Income and Retained Earnings 2022 $ 2023 $ 2024 Search PRE