Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 170 units $9.50 = $1, 615 Jan. 10 Sales 130 units @ $18.50 Jan. 20 Purchase 120 units@ $8.50 = 1, 026 Jan. 25 Sales 130 units @ $18.56 Jan. 30 Purchase 240 units@ $8.00 = 1,926 Totals 530 units $4, 555 260 units The Company uses a perpetual Inventory system. For specific Identification, ending Inventory consists of 270 units, where 240 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning Inventory. Required: 1. Complete comparative Income statements for the month of January for Laker Company for the four Inventory methods. Assume expenses are $1.550 and that the applicable Income tax rate Is 40% (Round your Intermediate calculations to 2 decimal places.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO Sales Cost of goods sold Gross profit 0 0 Expenses Income before taxes 0 Income tax expense Net income $ 0 $ 0 $ 0 5 2 Which method yields the highest net Income? O Specific Identification OFIFC O Weighted average O LIFO 3. Does net income using weighted average fall between that using FIFO and LIFO? O No O Yes 4. If costs were rising Instead of falling, which method would yield the highest net Income? O LIFO O Specific Identification O Weighted average O FIFO