The management of Utrillo Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Utrillo 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.

Instructions
Prepare comparative statements for the 5 years, assuming that Utrillo changed its method of inventory pricing to average-cost. Indicate the effects on net income and earnings per share for the years involved. Utrillo Instruments started business in 2012. (All amounts except EPS are rounded up to the nearest dollar.)

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UTRILLO INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31 $13,964 515,506 $16,673 $18,898 Cost of goods sold 1,100 13,900 1,000 15,000 1,115 15,900 Beginning inventory 1,000 13,000 1100) 12,900 1,064 1,237 17,100 1,237)1.369 16,968 1,930 Purchases Ending inventory 14,885 1,788 Total 14,000 1,506 763 743 372 371 1,388 S 1,759 $3.71 Gross profit Administrative expenses Income before taxes Income taxes (50%) Net income Retained earningsbeginning Retained earnings ending Earnings per share 1,536 768 768 2,237 S 3,005 $7.68 182 182 1.206 $ 1,388 $1.82 956 478 478 1,759 941 471 470 3,005 S 3,475 $4.78 SCHEDULE OF INVENTORY BALANCES USING AVERAGE-COST METHOD FOR THE YEARS ENDED MAY 31 2012 0 2014201502017 $1,010 $1,124 $1,101 $1,270 $1,500 $1,720