Exercise 22-4 Vaughn 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 Retained Earnings (Ending Balance) Net Income Under FIFO Under Average-Cost Under FIFO 2012 $93,000 $96,500 $84,000 2013 75,100 70,300 149,900 94,100 84,300 2014 252,800 2015 127,400 137,300 342,000 598,900 2016 293,300 282,800 2017 325,900 330,600 765,900 (a) What is the beginning retained earnings balance at January 1, 2014, if Vaughn prepares comparative financial statements starting in 2014? Retained earnings, January 1 (b) What is the beginning retained earnings balance at January 1, 2017, if Vaughn prepares comparative financial statements starting in 2017? Retained earnings, January l (c) What is the beginning retained earnings balance at January 1, 2018, if Vaughn prepares single-period financial statements for 2018? Retained earnings, January 1 (d) What is the net income reported by Vaughn in the 2017 income statement if it prepares comparative financial statements starting with 2015? 2015 2016 2017 Net Income