please answer with an explanation

Required information [The following information applies to the questions displayed below] 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 165 units@ $9.00 = $1,485 Jan. 10 Sales 125 units 6 $18.00 Jan. 20 Purchase 110 units@ $8.00 = 880 Jan. 25 Sales 125 units 6 $18.00 Jan. 30 Purchase 230 unitse $7.50 = 1,725 Totals 505 units $4,090 250 units I The Company uses a perpetual inventory system. For specific identication, ending inventory consists of 255 units, where 230 are from the January 30 purchase. 5 are from the January 20 purchase, and 20 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 $1,500 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.) Cost of goods sold Gross prot m Income before taxes Income tax expense Net income 2. Which method yields the highest net income? O LIFO O Weighted average O FIFO O Specific identification 3. Does net income using weighted average fall between that using FIFO and LIFO? O Yes O No 4. If costs were rising instead of falling, which method would yield the highest net income? O Specific identification O LIFO O Weighted average O FIFO