The management of Bonita Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Bonita changed its method of pricing inventory from last-in, first-out (LIFO) to average-cost in 2020. Given below is the 5-year summary of income under LIFO and a schedule of what the inventories would be if stated on the average-cost method. BONITA INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31 2016 2017 2018 2019 2020 Salesnet $13,960 $15,530 $16,800 $18,350 $18,780 Cost of goods sold Beginning inventory 1,000 1,090 1,000 1,120 1,230 Purchases 13,020 13,980 14,980 15,740 17,189 Ending inventory (1,090) (1,000) (1,120) (1,230) (1,350) Total 12,930 14,070 14,860 15,630 17,069 Gross profit 1,030 1,460 1,940 2,720 1,711 Administrative expenses 700 770 830 900 1,000 Income before taxes 330 690 1,110 1,820 711 Income taxes (50%) 165 345 555 910 356 Net income 165 345 555 910 355 Retained earningsbeginning 1,220 1,385 1,730 2,285 3,195 Retained earningsending $1,385 $1,730 $2,285 $3,195 $3,550 Earnings per share $1.65 $3.45 $5.55 $9.10 $3.55 SCHEDULE OF INVENTORY BALANCES USING AVERAGE-COST METHOD FOR THE YEARS ENDED MAY 31 2015 2016 2017 2018 2019 2020 $1,010 $1,120 $1,120 $1,270 $1,490 $1,710 Prepare comparative statements for the 5 years, assuming that Bonita changed its method of inventory pricing to average-cost. Indicate the effects on net income and earnings per share for the years involved. Bonita Instruments started business in 2015. Assume that the number of shares outsanding is 100. (Enter amounts that decrease cost of goods sold using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000). Round all amounts except EPS to the nearest whole dollar, e.g. 5,275. Round Earnings Per Share to 2 decimal places, e.g. 1.62. Round up the tax effects to the next whole dollar.) BONITA INSTRUMENT COMPANY Statement of Income and Retained Earnings For the Years Ended May 31 2016 2017 2018 2019 2020 Salesnet $enter a dollar amount 13,960 $enter a dollar amount 15,530 $enter a dollar amount 16,800 $enter a dollar amount 18,350 $enter a dollar amount 18,780 Cost of goods sold Beginning inventory enter a dollar amount 1,010 enter a dollar amount 1,120 enter a dollar amount 1,120 enter a dollar amount 1,270 enter a dollar amount 1,490 Purchases enter a dollar amount 13,020 enter a dollar amount 13,980 enter a dollar amount 14,980 enter a dollar amount 15,740 enter a dollar amount 17,189 Ending inventory enter a dollar amount (1,120) enter a dollar amount (1,120) enter a dollar amount (1,270) enter a dollar amount (1,490) enter a dollar amount (1,710) Total enter a dollar amount 12,910 enter a dollar amount 13,980 enter a dollar amount 14,830 enter a dollar amount 15,520 enter a dollar amount 16,969 Gross profit enter a dollar amount 1,050 enter a dollar amount 1,550 enter a dollar amount 1,970 enter a dollar amount 2,830 enter a dollar amount 1,811 Administrative expenses enter a dollar amount (700) enter a dollar amount (770) enter a dollar amount (830) enter a dollar amount (900) enter a dollar amount (1,000) Income before taxes enter a dollar amount 350 enter a dollar amount 780 enter a dollar amount 1,140 enter a dollar amount 1,930 enter a dollar amount 811 Income taxes enter a dollar amount (175) enter a dollar amount (355) enter a dollar amount (60) enter a dollar amount enter a dollar amount Net income enter a total net income amount 525 enter a total net income amount 45 enter a total net income amount 15 enter a total net income amount enter a total net income amount Retained earningsbeginning: As originally reported enter a dollar amount 1,220 enter a dollar amount 1,385 enter a dollar amount 1,730 enter a dollar amount 2,285 enter a dollar amount 3,195 Adjustment enter a dollar amount 1,220 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount As restated enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Retained earningsending $enter a total amount for this statement $enter a total amount for this statement $enter a total amount for this statement $enter a total amount for this statement $enter a total amount for this statement Earnings per share $enter earnings per share in dollars 0.10 $enter earnings per share in dollars $enter earnings per share in dollars $enter earnings per share in dollars $enter earnings per share in dollars