P7-5 (Algo) Evaluating the LIFO and FIFO Choice When Costs Are Rising and Falling LO7-2, 7-3 [The following information applies to the questions displayed below.] 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, 506 units for $17,710; beginning inventory, 293 units; purchases, 388 units; ending inventory, 175 units; and operating expenses, $3,100. The income tax rate is 40%. Required: 1. Complete the following tabulation for each situation in Situations A and B (prices rising), assume the following: beginning inventory, 293 units at $10=$2,930; purchases, 388 units at $11=$4,268. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 293 units at $11=$3,223; purchases, 388 units at $10=$3,880. Use periodic inventory procedures. (Round your answers to nearest dollar amount.) 2. Complete the following sentences: 3. Complete the following sentence: The relative effects on the cash position for each situation