Client has provided the following information Inventory Schedule Jan 1 Apr 1 Aug 1 Nov 1 Units 10.000 15,000 12.000 10,000 SSSS Amount $30,000 $48,000 $42.000 $36.000 Units sold --- 40,000 units sold at $10 per unit Operating Expenses --- $75,000 Income Tax Rate --- 25% There are no "Other Revenues" or "Other Expenses" a. Prepare a multi-step income statement for Client, assuming that Client has adopted the FIFO method. Prepare a multi-step income statement for Client, assuming that Client has adopted the LIFO method. If the LIFO method is adopted, how many units would need to be purchased to avoid a LIFO liquidation and what amount would be saved in income taxes if the liquidation is avoided? For the purposes of this problem, assume that the cost to acquire a unit of inventory in December is $3.60 per unit and the optimal inventory level is 10,000 units. Client has provided the following information Inventory Schedule Jan 1 Apr 1 Aug 1 Nov 1 Units 10.000 15,000 12.000 10,000 SSSS Amount $30,000 $48,000 $42.000 $36.000 Units sold --- 40,000 units sold at $10 per unit Operating Expenses --- $75,000 Income Tax Rate --- 25% There are no "Other Revenues" or "Other Expenses" a. Prepare a multi-step income statement for Client, assuming that Client has adopted the FIFO method. Prepare a multi-step income statement for Client, assuming that Client has adopted the LIFO method. If the LIFO method is adopted, how many units would need to be purchased to avoid a LIFO liquidation and what amount would be saved in income taxes if the liquidation is avoided? For the purposes of this problem, assume that the cost to acquire a unit of inventory in December is $3.60 per unit and the optimal inventory level is 10,000 units