Problem 0-4A The management of Gresa Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average cost. Th Inventories Purchases and Sales Beginning (6,000 units) $12,000 Total net sales (255,000 units) $1,224,000 Ending (21.000 units) Total cost of goods purchased (270.000 units) 617.000 Purchases were made quarterly as follows. Quarter Units Unit Cost Total Cost 70,000 $2.10 $147,000 2 60,000 2.20 132,000 3 60,000 2.30 138.000 80.000 2.50 200.000 270.000 $$17.000 1 4 Operating expenses were $150,000, and the company's income tax rate is 40% Prepare comparative condensed income statements for 2017 under FIFO and UFO. GRESA INC. Condensed Income Statements FIFO LIFO v 5 > >> > LIETO TEXT Anme the following questions for management (1) which cout How method (FIFO OF LIFO) produces the more meaningful inventory amount for the balance sheet (2) Which cost flow method (roor LIFO) produces the more meaninghal net income ta) Which con flow method (FIFO or LIFO) i more likely to approximate the actual physical flow of goede (4) How much more cash will be available for management under LIFO than under