Sweet Company began operations in 2015 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2017, in accordance with other companies in its industry, Sweet changed its inventory pricing to FIFO. The pretax income data is reported below.

Year		Weighted-Average			FIFO
2015		$379,700			$401,700
2016		407,400			427,900
2017		413,500			469,200

What is Sweets net income in 2017? Assume a 35% tax rate in all years.

Net Income

Compute the cumulative effect of the change in accounting principle from weighted-average to FIFO inventory pricing.

Net effect

Show comparative income statements for Sweet Company, beginning with income before income tax, as presented on the 2017 income statement.

		2017		2016		2015
Income before income tax		$		$		$
Income tax
Net income