The management of Flint Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Flint changed its method of pricing inventory from last-in, first-out (LIFO) to average-cost in 2017. 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.

FLINT INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31
		2013			2014			2015			2016			2017
Salesnet		$13,960			$15,570			$16,840			$18,260			$18,900
Cost of goods sold
Beginning inventory		1,000			1,100			1,010			1,120			1,250
Purchases		12,910			13,800			15,150			15,790			17,741
Ending inventory		(1,100)			(1,010)			(1,120)			(1,250)			(1,360)
Total		12,810			13,890			15,040			15,660			17,631
Gross profit		1,150			1,680			1,800			2,600			1,269
Administrative expenses		710			760			830			900			980
Income before taxes		440			920			970			1,700			289
Income taxes (50%)		220			460			485			850			145
Net income		220			460			485			850			144
Retained earningsbeginning		1,210			1,430			1,890			2,375			3,225
Retained earningsending		$1,430			$1,890			$2,375			$3,225			$3,369
Earnings per share		$2.20			$4.60			$4.85			$8.50			$1.44

SCHEDULE OF INVENTORY BALANCES USING AVERAGE-COST METHOD FOR THE YEARS ENDED MAY 31
2012		2013		2014		2015		2016		2017
$1,010		$1,120		$1,110		$1,270		$1,510		$1,710

Prepare comparative statements for the 5 years, assuming that Flint changed its method of inventory pricing to average-cost. Indicate the effects on net income and earnings per share for the years involved. Flint Instruments started business in 2012. (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.)

FLINT INSTRUMENT COMPANY Statement of Income and Retained Earnings For the Years Ended May 31

2013 2014

2015

2016

2017

sales-net

cogs-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

(it wasn't letting me copy chart so for every year there needs to be 5 line items across and 15 line items down)