Income effects of Inventory methods LO A1 Laker Company reported the following January purchases and sales data for its only product. Required: The Company uses a perpetual inventory system For specific identification ending inventory consists 270 units where 120 are from the January 30 purchase, 80 are from the January 20 purchase and 70 from beginning inventory Complete comparative income statements for the month of January for Laker Company for the four inventory methods Assume expenses are exist1, 900 and that the applicable income tax rate is 30%. Which method yields the highest net income? LIFO Specific identification FIFO Weighted average Does net income using weighted average fall between that using FIFO and LIFO? Yes No If costs wore rising instead of falling, which method would yield the highest net income? Specific identification FIFO Weighted average LIFO