Courtney Company uses a periodic inventory system. Data for 2020 are as follows: beginning merchandise inventory (December 31, 2019), 3,950 units at $36.90; purchases, 13,900 units at $43.00; operating expenses (excluding income taxes). $222,500; ending inventory per physical count at December 31, 2020, 4,100 units; sales price per unit, $72.10; and average income tax rate, 40 percent. Required: 1. Prepare statements of earnings under the FIFO and weighted average costing methods. (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar.) Statement of Earnings (Partial) Inventory Costing Method Weighted Units FIFO Average Sales revenue Cost of sales: Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of sales Gross profit Expenses (operating) Pretax earnings Income tax expense Net earnings 2-a. Which method, FIFO or weighted-average cost, is preferable in terms of net earnings? FIFO Weighted average cost 2-b. Which method, FIFO or weighted average cost, is preferable in terms of cash flow? O FIFO Weighted average cost 3. This part of the question is not part of your Connect assignment