Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,800, and that the applicable income tax rate is 39%.(Do not round your Intermediate calculations.)

Laker Company reported the following January purchases and sales data for its only product. Activiti es Beginn ing 1 invent ory 1 Sales 0 2 Purch 0 ase 2 Sales 5 3 Purch 0 ase Date Ja n. Ja n. Ja n. Ja n. Ja n. Totals Units Acquired at Cost 170 units 240 units 110 units @ = $7.40 Units Sold at Retail $ @ = $6.40 100 units @$15 .40 165 units @$15 .40 1,536 @ = $5.40 520 units 1,258 594 $ 3,388 265 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where 110 are from the January 30 purchase, 80 are from the January 20 purchase, and 65 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 $1,800, and that the applicable income tax rate is 39%. (Do not round your Intermediate calculations.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income 0 0 0 0 0 0 0 0 $0 $0 $0 $0 2. Which method yields the highest net income? Specific identification FIFO Weighted average LIFO 3. Does net income using weighted average fall between that using FIFO and LIFO? Yes No 4. If costs were rising instead of falling, which method would yield the highest net income? Weighted average FIFO LIFO Specific identification