Headlands Store uses a perpetual inventory system. Last year they reported the following results: Sales $1,070,000 Sales returns $ 17,000 Sales discounts $ 64,000 Gross profit margin using FIFO 26 % Gross profit margin using weighted average 27 % Operating expenses $216,140 (a) Prepare comparative income statements for both cost formulas. Headlands Store Condensed Income Statements Headlands Store Condensed Income Statements FIFO Weighted average $ $ Sales 1070000 107000