3 Required information Part 2 of 2 Use the following information for the Exercises below. [The following information applies to the questions displayed below.) Laker Company reported the following January purchases and sales data for its only product. points Units Acquired at Cost 180 units @ $10.50 = $1,890 Units sold at Retail Jan. Date Activities 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 140 units @ $19.50 110 units @ $ 9.50 = 1,045 eBook 130 units @ $19.50 260 units @ $ 9.00 = Totals 2,340 $5,275 550 units 270 units Hint The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 280 units, 260 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Print References Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 B ! Required information 1. Complete comparative income statements for the month of January for Laker Company for the tour inventory methods. Assume expenses are $1,650 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.) 2 of 2 LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO Book Sales Cost of goods sold Gross profit Expenses Income before taxes LOG Hint Income tax expense Net income Print eferences Part 2 of 2 2. Which method yields the highest net income? O FIFO oints OLIFO Specific identification Weighted average eBook Hint 3. Does net income using weighted average fall between that using FIFO and LIFO? ONo Print O Yes References 4. If costs were rising instead of falling, which method would yield the highest net income Specific identification OLIFO O Weighted average O FIFO