Fort Texas Company began operations on July 1, 2010, and has used the average-cost method of inventory valuation since its inception. In 2014, it decides to switch to the FIFO method. You are provided with the following information.

Instructions
(a) What is the beginning retained earnings balance at January 1, 2011, if Fort Texas prepares comparative financial statements starting in 2013?
(b) What is the beginning retained earnings balance at January 1, 2013, if Fort Texas prepares comparative financial statements starting in 2013?
(c) What is the beginning retained earnings balance at January 1, 2014, if Fort Texas prepares comparative financial statements starting in 2014?
(d) What is the net income reported by Fort Texas in the 2013 income statement if it prepares comparative financial statements starting with2011?

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Net Income Retained Earnin Under Average Cost S 55,000 125,000 165,000 110,000 Under FIFO $ 60,000 135,000 190,000 115,000 Under Average Cost 2010 2011 2012 2013 $55,000 180,000 315,000 400,000