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. 2020 $18,760 BONITA INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31 2016 2017 2018 2019 Sales-net $14,090 $15,380 $16,810 $18,280 Cost of goods sold Beginning inventory 1,010 1,100 990 1,110 Purchases 13,080 13,830 14,900 15,910 Ending inventory (1,100) (990) (1,110) (1,220) Total 12,990 13.940 14,780 15,800 Gross profit 1,100 1,440 2,030 2,480 Administrative expenses 700 770 840 900 Income before taxes 400 670 1,190 1.580 Income taxes (50%) 200 335 595 790 Net income 200 335 595 790 Retained earnings-beginning 1,200 1,400 1.735 2.330 Retained earnings-ending $1,400 $1,735 $2,330 $3,120 Earnings per share $2.00 $3.35 $5.95 $7.90 1,220 17,448 (1,350) 17,318 1,442 980 462 231 231 3,120 $3,351 $2.31 SCHEDULE OF INVENTORY BALANCES USING AVERAGE-COST METHOD FOR THE YEARS ENDED MAY 31 2015 2016 2017 2018 2019 2020 $1,020 $1,130 $1,110 $1,260 $1,480 $1,700 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 eg.-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 2017 2018 2016 Sales-net $ Cost of goods sold Beginning inventory Purchases Ending inventory Total Gross profit Administrative expenses Income before taxes Income taxes Net income Retained earnings-beginning: As originally reported Adjustment As restated Retained earnings-ending $ $ $ Earnings per share $ $ $