The management of Kingbird Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Kingbird 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. KINGBIRD INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31 2016 2017 2018 2019 Sales-net $14,070 $15,470 $16,570 $18,290 $18,760 Cost of goods sold Beginning inventory 990 1,080 1,010 1.130 Purchases 12,920 13,810 14,950 15,820 Ending inventory (1,080) (1,010) (1,130) (1,230) 17,456 Total 12,830 13,880 14,830 15,720 17,306 Gross profit 1,240 1,590 1,740 2,570 Administrative expenses 690 760 830 910 Income before taxes 550 830 910 1,660 Income taxes (50%) 275 415 455 830 Net income 275 415 455 830 Retained earnings-beginning 1,210 1,485 1,900 2,355 Retained earnings-ending $1,485 $1,900 $2,355 $3,185 $3,422 Earnings per share $2.75 $4.15 $4.55 $8.30 2020 1,230 (1,380) 1,454 474 237 237 3,185 $2.37 SCHEDULE OF INVENTORY BALANCES USING AVERAGE-COST METHOD FOR THE YEARS ENDED MAY 31 2015 2016 2017 2018 2019 2020 $1,000 $1,100 $1,130 $1,280 $1,490 $1,740 Prepare comparative statements for the 5 years, assuming that Kingbird changed its method of inventory pricing to average-cost. Indicate the effects on net income and earnings per share for the years Involved. Kingbird 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 eg. (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.) 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 2016 KINGBIRD INSTRUMENT COMPANY Statement of Income and Retained Earnings For the Years Ended May 31 2017 2018 $ 2019 2020 As restated Retained earnings-ending $ Earnings per share $ $ $ $ $