Waterway plc started operations on January 1, 2017, and has used the FIFO method of inventory...

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Waterway plc started operations on January 1, 2017, and has used the FIFO method of inventory valuation since its inception. In 2022, it decides to switch to the average-cost method. You are provided with the following information. Retained Earnings Net Income (Ending Balance) Under FIFO Under Average-Cost Under FIFO 2017 £90,300 £80,100 £90,000 2018 64,000 59,300 173,900 2019 97,500 87,900 239,800 2020 127,900 138,300 364,600 2021 277,300 268,000 623,800 2022 334,300 339,300 825,100 (a) What is the beginning retained earnings balance at January 1, 2019, if Waterway presents 2-year comparative financial statements starting in 2019? Retained earnings, January 1 £ (b) What is the beginning retained earnings balance at January 1, 2022, if Waterway presents 2-year comparative financial statements starting in 2022? Retained earnings, January 1 £ (c) What is the beginning retained earnings balance at January 1, 2023, if Waterway presents 2-year single-period financial statements for 2023? Retained earnings, January 1 (d) What is the net income reported by Waterway in the 2022 income statement if it presents 2-year comparative financial statements starting with 2020? 2020 2021 2022 Net Income £ Waterway plc started operations on January 1, 2017, and has used the FIFO method of inventory valuation since its inception. In 2022, it decides to switch to the average-cost method. You are provided with the following information. Retained Earnings Net Income (Ending Balance) Under FIFO Under Average-Cost Under FIFO 2017 £90,300 £80,100 £90,000 2018 64,000 59,300 173,900 2019 97,500 87,900 239,800 2020 127,900 138,300 364,600 2021 277,300 268,000 623,800 2022 334,300 339,300 825,100 (a) What is the beginning retained earnings balance at January 1, 2019, if Waterway presents 2-year comparative financial statements starting in 2019? Retained earnings, January 1 £ (b) What is the beginning retained earnings balance at January 1, 2022, if Waterway presents 2-year comparative financial statements starting in 2022? Retained earnings, January 1 £ (c) What is the beginning retained earnings balance at January 1, 2023, if Waterway presents 2-year single-period financial statements for 2023? Retained earnings, January 1 (d) What is the net income reported by Waterway in the 2022 income statement if it presents 2-year comparative financial statements starting with 2020? 2020 2021 2022 Net Income £

Answer rating: 100% (QA)

Requirement A 173900 Retained earnings January 1 Cumulative change in the accountin... View the full answer