Exercise 22-4 Grouper Company started operations on January 1, 2012, and has used the FIFO method of inventory valuation since its inception. In 2018, 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

2012 $100,500 $90,600 $100,100

2013 74,400 69,200 153,600

2014 83,900 74,500 254,300

2015 112,500 122,700 307,400

2016 292,200 281,200 534,700

2017 308,600 313,400 858,000

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

(b) What is the beginning retained earnings balance at January 1, 2017, if Grouper prepares comparative financial statements starting in 2017?

(c) What is the beginning retained earnings balance at January 1, 2018, if Grouper prepares single-period financial statements for 2018?

(d) What is the net income reported by Grouper in the 2017 income statement if it prepares comparative financial statements starting with 2015?

2015:

2016:

2017: