Problem 6-04A a-b The management of Bramble Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of operations for 2020 either the FIFO or the UFO method had been used. For 2020, the accounting records show these data: Inventories Beginning (5,000 units) Ending (17,000 units) $15,000 Purchases and Sales Total net sales (178.000 units) Total cost of goods purchased (190,000 units) $916,700 656,000 Purchases were made quarterly as follows. Quarter Unit Cost Total Cost Units 50.000 40,000 40,000 60,000 190,000 $3.20 3.35 3.50 3.70 $160,000 134,000 140,000 222,000 $656,000 Operating expenses were $125,000, and the company's income tax rate is 40%. Prepare comparative condensed income statements for 2020 under FIFO and UFO. BRAMBLE INC. Condensed Income Statements Answer the following questions for management. ... Which cost flow method (FIFO or LIFO) produces the more meaningful inventory amount for the balance sheet? (2) Which cost flow method (FIFO or LIFO) produces the more meaningful net income? Which cost flow method (FIFO or LIFO) is more likely to approximate the actual physical (5) flow of goods? (4) How much more cash will be available for management under LIFO than under FIFO