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Flay Foods has always used the FIFO inventory costing method for both financiel reporting and tax purposes. At the beginning of 2018, Flay decided to change to the LIFO method. As a result of the change, net income in 2018 was $80 million If the company had used LIFO in 2017, its cost of goods sold would have been higher by $6 million that year Flay's records of inventory purchases and sales are not aveilable for 2016 and several previous years Lost year, Flay reported the following net income amounts in its comparative income stoterments (s in millions) 2017 2816 2015 Net income $84 $82 $80 Required: 1. Prepare the journal entry at the beginning of 2018 to record the change in 3. What amounts will Flay report for net income in its 2018-2016 comparative principle (ignore income taxes) Complete this question by entering your answers in the tabs below. Prepare the journal entry at the beginning of 2018 to record the change in accounting principle. (ignore income taxes.) (If no entry is required tor a transaction/event, select "Wo journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Journal entry worksheet Record the change in accounting principle. Note: Enter debits before credits View general jounal Record entry Clear entry Required 1 Required 3 What amounts will Flay report for net income in its 2018-2016 comparative income statements? (Enter your answers in millions (i.e., 10,000,000 should be entered as 10) 2018 2017 2016 S in millions) Net income LFO LIFO (revised) FIFO Required 1

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