1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $2,050 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)

2. Which method yields the highest net income?

3. Does net income using weighted average fall between that using FIFO and LIFO?

4. If costs were rising instead of falling, which method would yield the highest net income?

Required information The following information applies to the questions displayed below. Laker Company reported the following January purchases and sales data for its only product. Units sold at Retail Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totala 170 units $23.50 Units Acquired at Coat 220 unital $14.50 - $3,190 170 units $13.50 2,295 200 units $23.50 340 unita $13.00 4,420 $9,905 730 unita 370 unita The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 360 units, where 340 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $2.050 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO 0 0 Sales Cost of goods sold Gross profit Expenses Income before takes Income tax expense Net income 0 0 S S 0 S 0 S 2. Which method yields the highest net income? o Weighted average O FIFO OLIFO O Specific identification 3. Does net income using weighted average fall between that using FIFO and LIFO? O Yes O No 4. If costs were rising instead of falling, which method would yield the highest net income? O LIFO O Specific identification O FIFO Weighted average