a's Shoes is nearing the end of its first year of operations. The company made inventory purchases of $745,000 during the year, as follows: January 1,000 units @ SIOO.OO = 5100,000 July 4,000 121.25 485,000 November 1,000 160.00 160,000 Totals 6,000 $745,000 Sales for the year will be 5,000 units for $1,200,000 revenue. Expenses other than cost of goods sold and income taxes will be $200,000. The president of the company is undecided about whether to adopt the FIFO method or the LIFO method for inventories. The company has storage capacity for 5,000 additional units of inventory. Inventory prices are expected to stay at SI 60 per unit for the next few months. The president is consid- ering purchasing 1,000 additional units of inventory at SI 60 each before the end of the year. He wishes to know how the purchase would affect net income under both FIFO and LIFO. The income tax rate is 42%. Required 1. To aid the decision, prepare income statements under FIFO and under LIFO, both without and with the year-end purchase of 1,000 units of inventory at $160 per unit. 2. Compare net income under FIFO without and with the year-end purchase. Make the same comparis FO. Under which method does the year-end purchase affec t