For specific identification, ending inventory consists of 360 units, where 320 are from the January 30 purchase, 5 are from the January 20 purchase, and 35 are from beginning inventory. Required: 1. Prepare comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,950, and that the applicable income tax rate is 40%. 2. Which method yields the highest net income? 3. Does net income using weighted average fall above, between, or below that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest net income?

Required information The folowing information applies to the questions displayed below. Laker Company reported the following January purchases and sales data for its only product. Units sold at Retail Date Activities Units Acquired at Cost Jan. 1 Beginning Jan. 10 Sales Jan. 20 Purchase 150 unit$12.50 1,875 Jan. 25 Sales Jan. 30 Purchase 320 units$12.00-3,840 210 units $13.50-$ 2,835 inventory 160 units $22.50 160 units $22.50 Totals 680 units $8,550 320 units For specific identification, ending Inventory consists of 360 units, where 320 are from the January 30 purchase, 5 are from the January 2o purchase, and 35 are from beginning inventory. Required: 1. Prepare comparative Income statements for the month of January for Laker Company for the four Inventory methods. Assume expenses are $1,950, and that the applicable income tax rate is 40%. 2. Which method yields the highest net income? 3. Does net income using weighted average fall above, between, or below that using FIFO and LFO? 4. If costs were rising Instead of talling, which method would yeld the highest net income? Complete this question by entering your answers in the tabs below Required Required Required Required Prepare comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,950, and that the applicable income tax rate is 40%. (Round your average cost per unit to 2 decimal places.) Show lessA Income Statements For Month Ended J Specific Weighted 31 FIF Sales Cost of goods sold Gross Expenses Income before taxes Income tax Net income