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

NASH INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31
		2016			2017			2018			2019			2020
Salesnet		$14,080			$15,420			$16,530			$18,390			$19,030
Cost of goods sold
Beginning inventory		990			1,100			990			1,120			1,230
Purchases		12,910			13,810			15,100			15,740			17,598
Ending inventory		(1,100)			(990)			(1,120)			(1,230)			(1,380)
Total		12,800			13,920			14,970			15,630			17,448
Gross profit		1,280			1,500			1,560			2,760			1,582
Administrative expenses		700			760			830			910			1,000
Income before taxes		580			740			730			1,850			582
Income taxes (50%)		290			370			365			925			291
Net income		290			370			365			925			291
Retained earningsbeginning		1,200			1,490			1,860			2,225			3,150
Retained earningsending		$1,490			$1,860			$2,225			$3,150			$3,441
Earnings per share		$2.90			$3.70			$3.65			$9.25			$2.91

SCHEDULE OF INVENTORY BALANCES USING AVERAGE-COST METHOD FOR THE YEARS ENDED MAY 31
2015		2016		2017		2018		2019		2020
$1,000		$1,120		$1,100		$1,280		$1,490		$1,720

Prepare comparative statements for the 5 years, assuming that Nash changed its method of inventory pricing to average-cost. Indicate the effects on net income and earnings per share for the years involved. Nash Instruments started business in 2015. Assume that the number of shares outsanding is 100.

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