Armstrong Ltd. has used the average cost (AC) method to determine inventory values since the company was first formed in 20X3. In 20x7, the company decided to switch to the FIFO method, to conform to industry practice. Armstrong will still use average cost for tax purposes. The tax rate is 25%. The following data have been assembled: 2ex3 Net income, as reported, after tax Closing inventory, AC Closing inventory, FIFO Dividends $78,000* 49,000 57,200 7,200 20x4 20X5 $93,600 $309,000* 64,800 80,000 82,000 73,800 10,000 10,000 20x6 20x7 $363,800* $172,809** 130,000 160,000 120,000 179,400 13,800 19,400 *Using the old policy, average cost **Using the new policy, FIFO. Required: Prepare the comparative retained earnings section of the statement of changes in shareholders' equity for 20X7, reflecting the change in accounting policy. ARMSTRONG LIMITED Comparative Retained Earnings Statement For the Year Ended 31 December 20X7 20X7 20X6 Opening retained earnings, 1 January S 803,400 $ 453,400 Cumulative effect of a change in accounting principles 0 Opening retained earnings restated 803,400 453,400 Earnings 172,800 363,800 Dividends (19,400) (13,800) Closing retained earnings, 31 December S 956,800 S 803,400 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted