2)Which method yeilds 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 Units Acquired at Cost 235 units@ $16.00 = $ 3,760 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan.20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 180 units@ $15.00 - 2,700 185 units @ $25.00 200 units @ $25.00 370 units @ $14.50 - 785 units 5,365 $11,825 385 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 400 units, where 370 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 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 $2,200, 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 L IFO 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