L05 change in accounting principle tim mattke company

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(L05) (Change in Accounting Principle) Tim Mattke Company began operations in 2015 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2017, in accordance with other companies in its industry, Mattkechanged its inventory pricing to FIFO. The pretax income data is reported below.Year Weighted-Average FIFO2015 $370,000 $395,0002016 390,000 430,0002017 410,000 450,000Instructions(a) What is Mattke’s net income in 2017? Assume a 35% tax rate in all years.(b) Compute the cumulative effect of the change in accounting principle from
(c) Show comparative income statements for Tim Mattke Company, beginning with income before income tax, as presented on the 2017 income statement.

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