The management of Grouper Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Grouper 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 GROUPER INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31 2013 2014 2015 2016 2017 $14,080 $15,420 $16,530 $18,390 $19,030 Sales net Cost of goods sold 1.120 1,230 Beginning inventory 12,910 13810 15,100 15740 175se purchases (1,100) nding inventory (990) (1,120) (1,230) (1,380) 13920 14970 15620 17449 12,800 Tota Gross profit Administrative expenses Income before taxes Income taxes (50%) Net income Retained earnings-begi nning $1,860 $1.490 Retained earnings-e nding