IRCES Problem 6-7A The management of Pharoah Company asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2019, the accounting records provide the following data. Inventory, January 1 (24,500 units) $110,250 Cost of 245,000 units purchased 1,303,400 Selling price of 196,000 units sold 1,715,000 Operating expenses 144,500 Study Units purchased consisted of 85,750 units at $5.10 on May 10; 85,750 units at $5s.30 on August 15; and 73,500 units at $5.60 on November 20. Income taxes are 30% Your answer is partially correct. Try again. Answer the following questions for management. (1) Which inventory cost flow method produces the most meaningful inventory amount for the balance sheet? FIFO method (2) Which inventory cost flow method produces the most meaningful net income? LIFO method (3) Which inventory cost flow method is most likely to approximate actual physical flow of the goods? FIFO method (4) How much additional cash will be available for management under LIFO than under FIFO? (5) How much of the gross profit under FIFO is ilusory in comparison with the gross profit under LIFO? Click if you would like to Show Work for this question: Open Show ork