Do not give image format Both the management of Oriole Instrument Corporation, a small company that follows IFRS, and its independentauditors recently concluded that the company's results of operations will be reliable and more relevant in future yearsif Oriole changes its method of costing inventory from FIFO to weighted average cost. The following data are a five-year income summary using FIFO and a schedule of what the inventories might have been if they had been stated usingthe weighted average cost method.Oriole Instrument CorporationStatement of Income and Retained Earnings for the Years Ended May 31202020212022$12,715$13,672$14,941Sales-netCost of goods soldBeginning inventoryPurchasesEnding inventoryTotalGross profitAdministrative expensesIncome before taxesIncome taxes (30%)Net incomeRetained earnings-beginningRetained earnings-endingEarnings per share(a)2018 2019$7792019$11,45082010,660(902)10,5788725742988990220998911,398(820)11,480Oriole Instrument CorporationSchedule of Inventory Balances Using Average Cost MethodYear Ended May 312020 2021 2022$922 $895 $1,041 $1,2141,2356266091834265491,1981,624$1,198 $1,624 $2,173$2.09$4.26$5.4982012,300(914)12,2061,4666827842352023$1,393201991413,038(1.014)12,9382023$15,4961,01414,022(1,123)13,9131,5838112,0037441,2597723782328815402,1733,054$3,054 $3,594$8.81$5.40Prepare comparative statements for the five years that would be suitable for inclusion in the historical summaryportion of Oriole's annual report, assuming that Oriole had changed its inventory costing method to weightedaverage cost in 2023. Indicate the effects on net income and earnings per share for the years involved. (Roundearnings per share to 2 decimal places, e.g. 52.75. Round answers to 0 decimal places, e.g.5,275.)ORIOLE INSTRUMENTOStatement of Income and RFor the Years Ende2020

The inventory costing methods include the First-in-first out (FIFO)Last in-first out (LIFO)Weighted…

Both the management of Oriole Instrument Corporation, a small company that follows IFRS, and its independent auditors recently concluded that the company's results of operations will be reliable and more relevant in future years if Oriole changes its method of costing inventory from FIFO to weighted average cost. The following data are a five- year income summary using FIFO and a schedule of what the inventories might have been if they had been stated using the weighted average cost method. Sales-net Cost of goods sold Oriole Instrument Corporation Statement of Income and Retained Earnings for the Years Ended May 31 2020 2021 2022 2023 $12.715 $13.672 $14,941 $15,496 Beginning inventory Purchases Ending inventory Total Gross profit Administrative expenses Income before taxes Income taxes (30%) Net income 2018 $779 (a) 2019 $11.450 820 10,660 (902) 10,578 872 574 298 89 209 989 426 Retained earnings-beginning 1.198 Retained earnings-ending $1.198 $1,624 Earnings per share $2.09 $4.26 902 820 11.398 12.300 13,038 (914) (1.014) 11,480 12.206 12,938 1.235 1,466 2003 626 682 744 609 784 183 235 (820) Oriole Instrument Corporation Schedule of Inventory Balances Using Average Cost Method Year Ended May 31 2019 2020 2021 2022 $922 $895 $1,041 $1,214 914 2023 $1,393 1,259 378 549 881 1,624 2,173 $2,173 $3,054 $5.49 $8.81 2019 1,014 14,022 (1,123) 13,913 1,583 811 772 232 540 3,054 $3,594 $5.40 Prepare comparative statements for the five years that would be suitable for inclusion in the historical summary portion of Oriole's annual report, assuming that Oriole had changed its inventory costing method to weighted average cost in 2023. Indicate the effects on net income and earnings per share for the years involved. (Round earnings per share to 2 decimal places, e.g. 52.75. Round answers to 0 decimal places, e.g. 5,275.) ORIOLE INSTRUMENTO Statement of Income and R For the Years Ende 2020

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q