Income is to be evaluated under four different situations as follows: a. Prices are rising: (1) 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, 520 units for $20,800; beginning inventory, 290 units; purchases, 400 units; ending inventory, 170 units; and operating expenses, $3,700. The income tax rate is 30%. Required: 1. Complete the following tabulation for each situation. In Situations A and B (prices rising), assume the following: beginning inventory, 290 units at $8 = $2,320; purchases, 400 units at $10 = $4,000. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 290 units at $10 = $2,900; purchases, 400 units at $8 = $3,200. Use periodic inventory procedures. 2. Complete the following sentence: 3. Complete the following sentence regarding the relative effects on the cash position for each situation. Complete the following tabulation for each situation. In Situations A and B (prices rising), assume the following: beginning inventory, 290 units at $8 = $2,320; purchases, 400 units at $10 = $4,000. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 290 units at $10 = $2,900; purchases, 400 units at $8 = $3,200. Use periodic inventory procedures. (Round your answers to nearest dollar amount.) PRICES RISING PRICES FALLING Situation A Situation B Situation C Situation D FIFO LIFO FIFO LIFO Sales revenue $ 20,800 $ 20,800 $ 20,800 $ 20,800 Cost of goods sold: Beginning inventory 2,320 Purchases 4,000 Goods available for sale 6,320 Ending inventory 1,700 Cost of goods sold 4,620 Gross profit 16,180 Expenses 3,700 3,700 3,700 3,700 Pretax income 12,480 Income tax expense 3,744 Net income 8,736 Show less