Current Attempt in Progress The management of Sheridan Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2025, the accounting records show these data. They use the periodic inventory system. Inventory, January 1 (10,500 units) Cost of 124,000 units purchased Selling price of 105,000 units sold Operating expenses $42,000 546,100 803,000 124,500 Units purchased consisted of 35,000 units at $4.20 on May 10, 64,000 units at $4.40 on August 15, and 25,000 units at $4.70 on November 20. Income taxes are 26%. (a) Prepare comparative condensed income statements for 2025 under FIFO and LIFO.

The management of Sheridan Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2025, the accounting records show these data. They use the periodic inventory system. Units purchased consisted of 35,000 units at $4.20 on May 10,64,000 units at $4,40 on August 15, and 25,000 units at $4.70 on November 20 . Income taxes are 26%. (a) Prepare comparative condensed income statements for 2025 under FIFO and LIFO