Affordable Autos Inc. has asked your bank for a $100,000 loan to expand its sales facility. Affordable Autos provides you with the following data:

* The 2016 ending inventory was $420,000 (FIFO).
Your inspection of the financial statements of other automobiles sales firms indicates that most of these firms adopted the LIFO method in the late 1970s. You further note that Affordable Autos has used 10% of depreciable asset cost when computing depreciation expense and that other automobile dealers use 20%. Assume that Affordable Autos's effective tax rate is 30% of income before tax. Also assume the following:

* The 2016 ending inventory was $420,000 (LIFO).
Required:
1. Compute cost of goods sold for 20172019, using both the FIFO and the LIFO methods.
2. Compute depreciation expense for Affordable Autos for 20172019, using both 10% and 20% of the cost of depreciable assets.
3. Recompute Affordable Autos's net income for 20172019, using LIFO and 20% depreciation. (Don't forget the tax impact of the increases in cost of goods sold and depreciation expense.)
4. Does Affordable Autos appear to have materially changed its financial statements by the selection of FIFO (rather than LIFO) and 10% (rather than 20%) depreciation?

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2019 2018 2017 Sales revenue Net income Ending inventory (FIFO)* $6,900,000 $6,400,000 $6,100,000 675,000 620,000 510,000 5,410,000 1,320,000 5,200,000 1,230,000 4,990,000 1,120,000 Purchases Depreciable assets 2019 2018 2017 Ending inventory (LIFO)* $518,000 $512,000 $500,000