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Exercise 22-4 Gordon Company started operations on January 1, 2009, and has used the FIFO method...

Exercise 22-4 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 $101,380 $91,360 $100,850 2010 70,770 65,890 160,050 2011 90,890 79,190 235,400 2012 119,070 130,320 340,300 2013 300,770 293,810 590,820 2014 305,340 310,740 779,100 (a) What is the beginning retained earnings balance at January 1, 2011, if Gordon prepares comparative financial statements starting in 2011? Retained earnings, January 1 $ (b) What is the beginning retained earnings balance at January 1, 2014, if Gordon prepares comparative financial statements starting in 2014? Retained earnings, January 1 $ (c) What is the beginning retained earnings balance at January 1, 2015, if Gordon prepares single-period financial statements for 2015? Retained earnings, January 1 $ (d) What is the net income reported by Gordon in the 2014 income statement if it prepares comparative financial statements starting with 2012? 2012 2013 2014 Net Income

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ekkarill92 answered 2 years ago
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