(Answered) Question - gordon company started operations on january 1

Accounting

Question - Gordon Company started operations on January 1, 2009, and has used the FIFO method of inventory valuation since its inception. In 2014, it decides to switch to the average cost method. You are provided with the following information.

	Net Income		Retained Earnings (Ending Balance)
	Under FIFO	Under Average-Cost	Under FIFO
2009	$101,600	$91,360	$100,700
2010	70,830	65,750	159,940
2011	90,330	79,320	234,700
2012	119,710	130,890	340,030
2013	299,970	293,850	590,660
2014	304,480	310,410	779,660

(a) What is the beginning retained earnings balance at January 1, 2011, if Gordon prepares comparative financial statements starting in 2011?

(b) What is the beginning retained earnings balance at January 1, 2014, if Gordon prepares comparative financial statements starting in 2014?

(c) What is the beginning retained earnings balance at January 1, 2015, if Gordon prepares single-period financial statements for 2015?

(d) What is the net income reported by Gordon in the 2014 income statement if it prepares comparative financial statements starting with 2012?

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