Net Income				Retained Earnings (Ending Balance)
		Under FIFO		Under Average-Cost		Under FIFO
2009		$101,670		$91,810		$101,370
2010		70,320		65,360		159,330
2011		89,970		80,150		234,650
2012		119,820		130,690		340,780
2013		300,570		292,710		590,820
2014		304,400		310,590		780,060

(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		$		$		$

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.