The management of Sage Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Sage changed its method of pricing inventory from lastin, 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. Prepare comparative statements for the 5 years, assuming that Sage changed its method of inventory pricing to average-cost. Indicate the effects on net income and earnings per share for the years involved. Sage 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.) \begin{tabular}{ll} \hline & \\ \cline { 3 } Sales-net & $2016 \\ \hline \end{tabular} SAGE INSTRUMENT COMPANY Statement of Income and Retained Earnings For the Years Ended May 31 Cost of goods sold \begin{tabular}{l|r|} \hline Beginning inventory & 1000 \\ \hline Purchases & 13070 \\ \hline \end{tabular} Ending inventory Gross profit Administrative expenses Income before taxes Income taxes Net income Retained earnings-beginning: As originally reported Adjustment As restated \begin{tabular}{l} 2019 \\ $ \\ \hline \end{tabular} \begin{tabular}{l} 2020 \\ \( \$ \longdiv { \square } \) \\ \hline \end{tabular} The management of Sage Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Sage changed its method of pricing inventory from lastin, 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. Prepare comparative statements for the 5 years, assuming that Sage changed its method of inventory pricing to average-cost. Indicate the effects on net income and earnings per share for the years involved. Sage 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.) \begin{tabular}{ll} \hline & \\ \cline { 3 } Sales-net & $2016 \\ \hline \end{tabular} SAGE INSTRUMENT COMPANY Statement of Income and Retained Earnings For the Years Ended May 31 Cost of goods sold \begin{tabular}{l|r|} \hline Beginning inventory & 1000 \\ \hline Purchases & 13070 \\ \hline \end{tabular} Ending inventory Gross profit Administrative expenses Income before taxes Income taxes Net income Retained earnings-beginning: As originally reported Adjustment As restated \begin{tabular}{l} 2019 \\ $ \\ \hline \end{tabular} \begin{tabular}{l} 2020 \\ \( \$ \longdiv { \square } \) \\ \hline \end{tabular}