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Presented below are income statements prepared on a LIFO and FIFO basis for Cullumber Company, which started operations on January 1, 2019. The company presently uses the LIFO method of pricing its inventory and has decided to switch to the FIFO method in 2020. The FIFO income statement is computed in accordance with the requirements of GAAP. Cullumbers profit-sharing agreement with its employees indicates that the company will pay employees 10% of income before profit-sharing. Income taxes are ignored.

LIFO Basis FIFO Basis 2020 2019 2020 2019 Sales Cost of goods sold $3,070 $3,070 1,090 990 970 970 $3,070 $3,070 1.090 970 970 970 Operating expenses Income before profit-sharing 1,010 1,110 1,010 1.130 Profit-sharing expense 101 111 103 111 Net income $909 $999 $907 $1,019 Answer the following questions. Assume that Cullumber has a beginning balance of retained earnings at January 1, 2020, of $999 using the LIFO method. The company declared and paid dividends of $520 in 2020. Prepare the retained earnings statement for 2020, assuming that Cullumber has switched to the FIFO method. (Round answers to 0 decimal places, e.g. 125.) CULLUMBER COMPANY Retained Earnings Statement Retained Earnings, January 1, as reported Cumulative Effect of Change to FIFO Retained Earnings, January 1, as adjusted Add : Net Income Less Less : Dividends Retained Earnings, December 31 Retained Earnings, December 31 C

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