Question No: 03 Due to the macroeconomic factors prevailing in the Egyptian economy, Egypt Gas Corporation (EGC) has changed its inventory method from Average Cost to the FIFO method in 2019. EGC started its operations in January 2017. The share capital at the start-up was $1,000,000. Years 2017 2018 2019 Sales 4,000,000 4,500,000 5,000,000 Purchases (Net) 1,200,000 1,800,000 2,100,000 Operational Expenses 600,000 600,000 600,000 Cashflow from operations ? The inventory records under ACM and the FIFO could be presented as follows: ACM FIFO Difference Jan, 2017 0 0 Dec, 2017 900,000 940,000 Dec, 2018 1,400,000 1,700,000 ? Dec, 2019 1,900,000 2,100,000 The Cost of Goods Sold under ACM and FIFO method could be presented as follows: ACM FIFO Difference 2017 2,100,000 2,150,000 2018 2,300,000 2,400,000 20193,200,000 3,500,000 Required: In line with the Retrospective Accounting Change method, develop a scenario on the effects of change from the ACM to FIFO method on income statement, balance sheet and the cashflow statement, provided that the company is operating business in the Free-zone