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	200	units	@	$	12.50	=	$	2,500
Jan.	10		Sales										160	units	@	$	21.50
Jan.	20		Purchase	130	units	@	$	11.50	=		1,495
Jan.	25		Sales										140	units	@	$	21.50
Jan.	30		Purchase	300	units	@	$	11.00	=		3,300
			Totals	630	units					$	7,295		300	units
The company uses a periodic inventory system. For specific identification, ending inventory consists of 330 units, where 300 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory.

1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,850, and that the applicable income tax rate is 40%. (Round intermediate calculations and final answers to 2 decimal places.)

2. Which method yields the highest net income? Specific Identication LIFO FIFO Weighted average

3. Does net income using weighted average fall between that using FIFO and LIFO? Yes or No

4. If costs were rising instead of falling, which method would yield the highest net income? Specific Identication LIFO FIFO Weighted average

LAKER COMPANY Income Statements For Month Ended January 31 Specific Identification Weighted Average FIFO LIFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00