The management of Oriole Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Oriole 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 $18,890 ORIOLE INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31 2016 2017 2018 2019 Sales-net $ 13,880 $15,620 $16,680 $18,270 Cost of goods sold Beginning inventory 1,000 1,110 990 1,100 Purchases 12,940 13,780 15,140 16,000 Ending inventory (1,110) (990) (1,100) (1,250) Total 12,830 13,900 15,030 15,850 Gross profit 1,050 1,720 1,650 2,420 Administrative expenses 700 760 830 900 Income before taxes 350 960 820 1,520 Income taxes (50%) 175 480 410 760 Net income 175 480 410 760 Retained earnings-beginning 1,200 1,375 1,855 2,265 Retained earnings-ending $1,375 $1,855 $2,265 $3,025 Earnings per share $1.75 $4.80 $4.10 $7.60 1,250 17,269 (1,360) 17,159 1,731 1,000 731 366 365 3,025 $3,390 $3.65 SCHEDULE OF INVENTORY BALANCES USING AVERAGE-COST METHOD FOR THE YEARS ENDED MAY 31 2015 2016 2017 2018 2019 2020 $1,010 $1,140 $1,110 $1,250 $1,520 $1,700 Prepare comparative statements for the 5 years, assuming that Oriole changed its method of inventory pricing to average-cost. Indicate the effects on net income and earnings per share for the years involved. Oriole 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.) ORIOLE INSTRUMENT COMPANY Statement of Income and Retained Earnings For the Years Ended May 31 2017 2018 2016 2019 2020 Sales-net 13,880 15,620 16,680 18,270 18,890 Cost of goods sold Beginning inventory 1,010 1,140 1,110 1,250 1,520 Purchases 12,940 13,780 15,140 16,000 17,269 Ending inventory (1,140) (1,110) (1,250) (1,520) (1,700) Total 12,810 13,810 15,000 15,730 17,089 Gross profit 1,070 1,810 1,680 2,540 1,801 Administrative expenses (700) (760) (830) (900) (1,000) X Income before taxes 370 1.050 850 1,640 801 Income taxes 185 (525) (425) (820) (400.50) x Net income 185 525 425 820 401.5 Retained earnings-beginning: As originally reported 1,205 1,390 1,915 2,340 3,160 X x X Adjustment 10 55 70 125 As restated 1,205 1,390 1,915 2,340 3,160 Retained earnings_onding 1 200 1016 200 16ol 2.600