Question: Restate the financial statements (income and balance sheet) assuming the retroactive, cumulative, and prospective accounting change methods are applied

IBCOOL, Inc. Financial Statements For The Year Ended December 31, IAs Reportedy Income Statement 1991 1992 1993 1994 Sales Revenue 4,000,000. 5,500,000 6,000,000 9,000,000 Cost of Goods Sold 2,680,000 3,740,000 .4,200,000 7,020,000 Gross Profit 1,320,000 1,760,000 1,800,000 1,980,000 Operating Expenses: Factory Payroll 200,000 240,000 400,000 450,000 Administrative Payroll 350,000 500,000 500,000 700,000 Advertising Expense 80,000 90,000 65,000 100,000 Auto & Truck Expense 220,000 230,000 85,000 75,000 Repairs & Maintenece 40,000 70,000 90,000 180,000 Depreciation Expense 500,000 400,000 300,000 200,000 Total operating Expenses 1,390,000 1,530,000 1,540,000 1,705,000 Income from operations (70,000) 230,000 260,000 275,000 Extraordinary Heat Loss 0 (250,000) Cumulative Change in Acct Principle Net Income (70,000) (20,000) 260,000 275,000