Gordon Company started operations on January 1, 2009, and has used the FIFO meth

Question

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. Net Income Retained Earnings (Ending Balance) Under FIFO Under Average-Cost Under FIFO 2009 $100,820 $92,700 $100,560 2010 69,120 64,360 160,190 2011 89,850 80,580 234,290 2012 120,380 129,140 339,690 2013 300,680 292,210 590,370 2014 305,410 310,820 780,700 (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 $Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer

Explanation / Answer

2012 129,140 2013 292,120 2014 310,820

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