The management of Coronado Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Coronado 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. CORONADO INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31 2013 201620 2014 2015 $14,000 $15,390 $16,560 $18,290 $18,900 Cost of goods sold Beginning inventory 1,000 1,240 12,880 13,790 14,850 15,810 17,165 1,090 1,010 1,130 Ending inventory (1,090 (1010) ,130 (1,240) ,380) Total 12,790 13,870 14,730 15,700 17,025 1,875 1,830 830 1,000 Gross proft Administrative expenses Income before taxes Income taxes (50%) Net income Retained earnings-beginning Retained earnings-ending Earnings per share 1,210 1,520 2,590 700 900 980 760 1.600 S10 895 760380 500 448 447 845 380 65 $1,465 $1,845 -3, 190 $3,637 1,210 1,4 1,845 2,345 $2,345__45 --$3,190 $2.55 $3.80_- $5.00 58.45S -- SCHEDULE OF INVENTORY BALANCES USING AVERAGE-COST METHOD FOR THE YEARS ENDED MAY 31 2012 2013 2014 2015 2016 2017 $1,010 $1,110 $1,110 $1,280 $1,500 $1,730