12ncial con Question 2 - HW Chapter 5 Connect HW Chapter 5 Saved Help Save & Exit Submit Check my work 2 Laker Company reported the following January purchases and sales data for its only product Units Acquired at Cost 200 units $12.50 = $2,500 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20. Purchase Jan 25 Sales Jan. 3D Purchase Tatals Units sold at Retail 160 units $21.50 140 units $21.50 130 units $11.50 - 1,495 Part 2 of 2 300 units $11.00 3,300 630 units $7,295 300 units 1 points Seed The Company uses a perpetual inventory system. For specific Identification, ending inventory consists of 330 units, where 300 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory BO Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods Assume expenses are $1850 and that the applicable income tax rate is 40% (Round your Intermediate calculations to 2 decimal places.) Herrences LAKER COMPANY Income Statements For Month Ended January 11 Specific Weighted Identification Avenge FIFO UFO 0 0 Cost of goods sold Gross proti Expono Income before Income tax expert 0 0 0 Required information LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO 0 0 0 0 Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income 0 0 0 0 $ 0 $ 0 $ 0 $ 0 2. Which method yields the highest net income? LIFO Specific identification FIFO Required information 2. Which method yields the highest net income? 2 LIFO Specific identification ed FIFO Weighted average 3. Does net income using weighted average fall between that using FIFO and LIFO? nces Yes No 4. If costs were rising instead of falling, which method would yield the highest net income? Weighted average ces 4. If costs were rising instead of falling, which method would yield the highest net income? Weighted average FIFO LIFO Specific identification