Problem 6-4A (Part Level Submission) The management of Gresa 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 2017 if either the FIFO or the LIFO method had been used. For 2017, the accounting records show these data: Inventories Purchases and Sales $20,000 Beginning (10,000 units) Ending (12,000 units) Total net sales (268,000 units) Total cost of goods purchased (270,000 units) $1,273,000 671,000 Purchases were made quarterly as follows. Quarter Units Unit Cost Total Cost 1 $2.30 70,000 60,000 2 2.40 $161,000 144,000 150,000 216,000 3 2.50 60,000 80,000 4 2.70 270,000 $671,000 Operating expenses were $150,000, and the company's income tax rate is 40%. (a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO. GRESA INC. Condensed Income Statements FIFO LIFO $ $ 4. .. (a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO. GRESA INC. Condensed Income Statements FIFO LIFO $ $ - . Beginning Inventory Cost of Goods Available for Sale Cost of Goods Purchased Cost of Goods Sold Dividends Ending Inventory Expenses Gross Profit/ (Loss) Income before Income Taxes Income Tax Expense Net Income /(Loss) Operating Expenses Retained Earnings, January 1 Retained Earnings, December 31 Sales Revenues Total Expenses Total Sales Revenues 4 : A $ $