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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 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 $391,000 $405,200 2016 408,900 422,600 2017 418,500 465,500 A. What is Sweets net income in 2017? Assume a 35% tax rate in all years. B.Compute the cumulative effect of the change in accounting principle from weighted-average to FIFO inventory pricing. Show comparative income statements for Sweet Company, beginning with income before income tax, as presented on the 2017 income statement.

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