E7-10 (Algo) Evaluating the Effects of Inventory Methods on Income from Operations, Income Taxes, and Net Income (Periodic) [LO 7-3] Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 1,400 units at $40; purchases, 3,600 units at $45; operating expenses (excluding income taxes), $93,500; ending inventory per physical count at December 31, 950 units; sales price per unit, $80; and average income tax rate, 30%. Required: 1. Complete the income statements and the cost of goods sold calculation under the FIFO, LIFO, and weighted average costing methods. 2-a. Between FIFO and LIFO, which method is preferable in terms of maximizing income from operations, if costs are rising? 2-b. Between FIFO and LIFO, which method is preferable in terms of minimizing income taxes, if costs are rising? 3-a. Between FIFO and LIFO, which method is preferable in terms of maximizing income from operations, if costs are falling? 3-b. Between FIFO and LIFO, which method is preferable in terms of minimizing income taxes, if costs are falling? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 38 Complete the income statements and the cost of goods sold calculation under the FIFO, LIFO, a methods. (Do not round intermediate calculations. Round your final answers to the nearest doll Income Statement Sales Revenue Cost of Goods Sold" Gross Profit Operating Expenses Income from Operations Income Tax Expense Net Income "Cost of Goods Sold Equation Beginning Inventory Purchases Inventory Costing Method Units FIFO LIFO Weighted Average 0 0 0 0 0 0 $ 0 0 Goods Available for Sale 0 0 0 0 Ending Inventory Cost of Goods Sold 0 $ 0 $ 0 $ Req 1 Req 2A > Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3A Req 38 Between FIFO and LIFO, which method is preferable in terms of maximizing income from operations, if costs are rising? OLIFO OFIFO Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B Between FIFO and LIFO, which method is preferable in terms of minimizing income taxes, if costs are rising? OLIFO OFIFO < Req 2A Req 3A > Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3A Req 38 Between FIFO and LIFO, which method is preferable in terms of maximizing Income from operations, if costs are falling? OLIFO OFIFO Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B Between FIFO and LIFO, which method is preferable in terms of minimizing income taxes, if costs are falling? OLIFO OFIFO