Courtney Company uses a periodic inventory system. Data for 2020 are as follows: beginning merchandise inventory (December 31, 2019), 3,850 units at $36.70; purchases, 13,700 units at $41.30; operating expenses (excluding income taxes), $221,500; ending inventory per physical count at December 31, 2020, 4,000 units; sales price per unit, $71.70; 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 Units FIFO Weighted Average Sales revenue Cost of sales: Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of sales 0 0 0 0 0 0 0 0 Gross profit Expenses (operating) Pretax earnings 0 0 Income tax expense Net earnings $ 0 $ 0 2-a. Which method, FIFO or weighted average cost, is preferable in terms of net earnings? FIFO O Weighted average cost 2-b. Which method, FIFO or weighted average cost, is preferable in terms of cash flow? O FIFO O Weighted average cost