Royal Inc. began operations on January 1, 2015, and uses the FIFO method of pricing inventory Management is contemplating a change to Average-Cost method for 2018. The following information is available for the years 2015-2017. Ignore income tax. Net Income Computed Using: FIFO Method $120,000 80,000 165,000 Average-Cost Method 2015 $105,000 2016 70,000 2017 150,000 20. The cumulative effect of this accounting change on beginning retained earnings in 2018 is a. $60,200. b. $40,000. c. $15,000. d. $12,800. 21. The net income for 2017 on comparative financial statements issued in 2018 is a. $60,200. b. $70,000. c. $150,000. d. $165,000