Linden Company started operations on January 1, 2010, and has used the FIFO method of inventory valuation since its inception. In 2015, it decides to switch to the average-cost method. You are provided with the following information.

Instructions

(a) What is the beginning retained earnings balance at January 1, 2012, if Linden prepares comparative financial statements starting in 2012?

(b) What is the beginning retained earnings balance at January 1, 2015, if Linden prepares comparative financial statements starting in 2015?

(c) What is the beginning retained earnings balance at January 1, 2016, if Linden prepares singleperiod financial statements for 2016?

(d) What is the net income reported by Linden in the 2015 income statement if it prepares comparative financial statements starting with 2013?

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Under FIFO 2010 100,000 Net Income Under Average-Cost 92,000 Retained Earnings (ending balance) Under FIFO 100,000 2011 70,000 65,000 160,000 2012 90,000 80,000 235,000 2013 120,000 130,000 340,000 2014 300,000 293,000 590,000 2015 305,000 310,000 780,000