Bonita Store uses a perpetual inventory system. Last year they reported the following results: Sales Sales returns Sales discounts Gross profit margin using FIFO Gross profit margin using weighted average Operating expenses $1,090,000 $25,000 $54,000 30 % 31 % $266,300 Prepare comparative income statements for both cost formulas. Bonita Store Condensed Income Statements FIFO Weighted average Prepare comparative income statements for both cost formulas. Bonita Store Condensed Income Statements FIFO 1090000 $ Weighted average Sales 1090000 Less Cost of Goods Sold $ $ Are prices rising or falling? Prices are Indicate, by using lower, for higher, and same, how, comparatively, the following income statement and balance sheets amounts will be impacted by the choice of inventory cost formula during a time of falling prices. FIFO Weighted average Cost of goods sold Gross profit and profit Ending inventory ? Owner's equity Cash flow