Question No: 03 Due to the macroeconomic factors prevailing in the Egyptian economy, Egypt Gas Corporation (EOC) 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 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 Sales The inventory records under ACM and the FIFO could be presented as follows: ACM FIFO Difference Jan 2017 Dec, 2017 Dec, 2018 900.000 1.400.000 1.900.000 940,000 1,700,000 2.100,000 Dec, 2019 The Cost of Goods Sold under ACM and FIFO method could be presented as follows: 2017 2018 2019 ACM 2,100,000 2,300,000 3,200,000 FIFO 2,150,000 2.400.000 3,500,000 Difference ? ? 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