3. Suppose a division of New York Instruments Incorporated that sells computer microchips has these inventory records for January 2021: 1(Click the icon to view the inventory records.) The company's accounting records show 390 units were sold for revenue of $7,020. Operating expense for January was $1,000. Read the requirements. Requirement 1. Prepare the company's January, multistep income statement. Calculate income using the LIFO, average-cost, and FIFO methods. Label the bottom line "Operating income." Round the average cost per unit to three decimal places and all other figures to whole-dollar amounts. Show your computations. Begin by preparing the income statement using LIFO, then average, and finally FIFO cost. New York Instruments Incorporated Income Statement for Microchip Month Ended January 31, 2021 Sales revenue Cost of goods sold Gross profit LIFO Average FIFO Operating expenses Operating income Requirement 2. Suppose you are the financial vice president of New York Instruments Incorporated. Which inventory method will you use if your motive is to a. minimize income taxes? Use (1). to minimize income taxes. Operating income under this method is lowest when inventory unit costs are (2) direction, income under (3). would be lowest.) as they are in this case. (If inventory unit costs were going the opposite b. report the highest operating income? Use (4) to report the highest operating income. Income under this method is highest when inventory unit costs are (5) as in this situation.