2 ! Part 2 of 2 Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.) 0.76 points Laker Company reported the following January purchases and sales data for its only product. Skipped Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals Units Acquired at Cost Units sold at Retail 140 units @ $6.00 = $ 840 100 units @ $15 60 units @ $5.00 300 80 units @ $15 180 units @ $4.50 810 380 units $1,950 180 units eBook co Hint The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory Print Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 References Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,250, 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 UFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income 2. Which method yields the highest net income? OLIFO Weighted average FIFO Specific identification 2. Which method yields the highest net income? O LIFO Weighted average O FIFO O Specific identification 3. Does net income using weighted average fall between that using FIFO and LIFO? No Yes 4. If costs were rising instead of falling, which method would yield the highest net income? O LIFO O Weighted average O FIFO Specific identification