The management of Kingbird Instrument Company had concluded, with the concurrence of its independent auditors, that results 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 stated on the average-cost method. 2020 $19,050 1,230 15,519 (1,380) KINGBIRD INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31 2016 2017 2018 2019 Sales-net $13,820 $15,490 $16,640 $18,380 Cost of goods sold Beginning inventory 1,010 1,090 1,010 1,100 Purchases 13,010 13,830 15,150 15,820 Ending inventory (1,090) (1,010) (1,100) (1,230) Total 12,930 13,910 15,060 15,690 Gross profit 890 1,580 1,580 2,690 Administrative expenses 700 760 830 910 Income before taxes 190 820 750 1,780 Income taxes (50%) 95 410 375 890 Net income 95 410 375 890 Retained earnings-beginning 1,220 1,315 1,725 2,100 Retained earnings-ending $1,315 $1,725 $2,100 $2,990 Earnings per share $0.95 $4.10 $3.75 $8.90 15,369 3,681 990 2,691 1,346 1,345 2,990 $4,335 $13.45 SCHEDULE OF INVENTORY BALANCES USING AVERAGE-COST METHOD FOR THE YEARS ENDED MAY 31 2015 2016 2017 2018 2019 2020 $1,020 $1,110 $1,130 $1,260 $1,500 $1,720 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 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.) 2010 2017 2010 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 $ $