2 Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Reg 2A Req 2B Reg 3 2.5 points Assume the company uses variable costing. Prepare an income statement for Year 1 and Year 2. EO 03:46:07 Walsh Company Income Statement Year 1 Year 2 Sales 2,160,000 $ 2,700,000 Variable expenses: Variable selling and administrative Cash Fixed manufacturing overhead Fixed selling and administrative expense >X 80,000 400,000 320,000 90,000 890,000 1,270,000 100,000 500,000 320,000 90,000 1,010,000 1,690,000 Mc Check my work mode: This shows what is 2. Complete this question by entering your answers in the tabs below. 2.5 points Reg 1A Reg 1B Reg 2A Reg 28 Req3 03:46:02 Assume the company uses absorption costing, Prepare an income statement for Year 1 and Year 2. (Round your inter calculations to 2 decimal places.) Walsh Company Income Statement Year 1 Sales Cost of goods sold Gross margin Fixed manufacturing overhead Net operating income (loss) $ 2.160,000 1,936,000 224.000 90,000 $ 134,000 Year 2 $ 2,700,000 2,484,000 216,000 90,000 $ 126,000 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1 Answer is not complete. Complete this question by entering your answers in the talis below. Reg 1A Reg 1B Reg 2A Reg 2B Req3 Reconcile the difference between variable costing and absorption costing net operating income in Year 1. (Enter any losses or deductions as a negative value.) Year 1 Year 2 Variable costing net operating income (los) 10,000 $ 90.000 Add (deduct) fixed manufacturing overhead deferred in (released from) Inventory under absorption costing 64,000 64,000 Absorption costing not operating income (loss) 54,000 $ 26,000 $ $