During 2017, Sheffield Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2016 and 2015 (Sheffield’s first year of operations) under FIFO was $162,140 and $181,860, respectively. Pretax income using weighted-average pricing in the prior years would have been $153,100 in 2016 and $174,200 in 2015. In 2017, Sheffield reported pretax income (using weighted-average pricing) of $205,200. Show comparative income statements for Sheffield, beginning with "Income before income tax," as presented on the 2017 income statement. (The tax rate in all years is 25%.)

Respuesta :

Answer:

Net Income for 2017,2016 & 2015 are $153,900, $114,825 and $130,650 respectively.

Explanation:

                                                      2017            2016           2015

Income before income taxes      $205,200  $153,100    $174,200

Less: Income taxes at 25%          ($51,300)   ($38,275)   ($43,550)

Net Income                                  $153,900    $114,825   $130,650