2. Which method yields the highest net income? O FIFO Specific identification OLIFO Weighted average 3. Does net income using weighted average fall between that using FIFO and LIFO? Yes O No 4. If costs were rising instead of falling, which method would yield the highest net income? Weighted average O FIFO OLIFO LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO L IFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income 0 0 0 $ 0 $ 0 $ 0 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 Acquired at Cost 165 units@ $9.00 - $1,485 Units sold at Retail 125 units @ $18.00 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 110 units@ $8.00 = 880 125 units @ $18.00 230 units @ $7.50 = 505 units 1,725 $4,090 250 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where 230 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 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 $1,500 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)