NEED ANSWERS TO RED BOXES + CALCULATIONS

Exercise 22-5 Presented below are income statements prepared on a LIFO and FIFO basis for Kenseth Company, which started operations on January 1, 2013. The company presently uses the LIFO method of pricing its inventory and has decided to switch to the FIFo method in 2014. The FIFO income statement is computed in accordance with the requirements of GAAP. Kenseth's profit-sharing agreement with its employees indicates that the company will pay employees 5% of income before profit sharing. Income taxes are ignored. LIFO Basis FIFO Basis 2014 2013 2014 2013 Sales $3,800 $3,800 $3,800 $3,800 Cost of goods sold 1,117 1,047 1,100 903 operating expenses 1,200 1,200 1,200 1,200 Income before profit-sharing 1,483 1,553 1,500 1,697 74 Profit-sharing expense 75 85 $1,409 $1,475 $1,425 $1,612 Net income Your answer is incorrect. Try again. x If comparative income statements are prepared, what net income should Kenseth report in 2013 and 2014? (Round answers to o decimal places, e.g. 125) 2013 014 Net income 1612 1425