Courtney Company uses a periodic inventory system. Data for 2020 are as follows: beginning merchandise inventory (December 31, 2019), 3,150 units at $35.30; purchases, 12,300 units at $38.50; operating expenses (excluding income taxes), $214,500; ending inventory per physical count at December 31, 2020, 2,900 units, sales price per unit, $70.20; 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 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? O 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