Income is to be evaluated under four different situations as follows: a. Prices are rising: ) Situation A: FIFO is used. 2) Situation B: LIFO is used b. Prices are falling: (1) Situation C: FIFO is used. (2) Situation D: LIFO is used. The basic data common to all four situations are: sales, 503 units for $19,114; beginning inventory, 284 units; purchases, 393 units; ending inventory, 174 units; and operating expenses, $3,200 The income tax rate is 40%. 2. Complete the following sentences: When prices are rising, gives a higher net income than effect results When prices are falling 3. Complete the following sentence: The relative effects on the cash position for each situation When prices are rising, (than derives a more favorable cash position the difference in income tax