The management of Utrillo Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Utrillo changed its method of pricing inventory from FIFO to average-cost in 2015. Given below is the 5-year summary of income under FIFO and a schedule of what the inventories would be if stated on the average-cost method (amounts in millions, except earnings per share).

Instructions Prepare comparative statements for the 5 years, assuming that Utrillo changed its method of inventory pricing to average-cost. Indicate the effects on net income and earnings per share for the years involved.
Utrillo Instruments started business in 2010. (All amounts except EPS are rounded up to the nearest yen.)

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UTRILLO INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31 2011 2012 2013 2014 2015 Cost of gd Upload to prntscr.com (Ctrl+D) 15,506 16,673 18,221 18,898 Beginning Inventory 1,000 1,100 1,000 1,115 1,237 Purchases 13,000 13,900 15,000 15,900 17,100 Ending Inventory (1,100) (1,000) (1,115) (1,237) (1,369) Total 12,900 14,000 14,885 15,778 16,968 Gross profit 1,064 1,506 1,788 2,443 1,930 Administrative expenses 700 763 832 907 969 Income before taxes 364 743 956 1,536 941 Income taxes (50%) 182 372 478 768 471 Net Income 182 371 478 768 Retained earnings-beginning 1,206 1,388 1,759 2,237 470 3,005 Retained earnings-ending 1,388 1,759 2,237 3,005 V 3,475 Earnings per share 1.82 3.71 4.78 7.68 4.70