Problem 6-4A 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 Beginning (7,000 units) Ending (20,000 units) $14,000 Total net sales (177,000 units) Total cost of goods purchased (190,000 units) $743,400 435,000 Purchases were made quarterly as follows Quarter Units Unit Cost Total Cost $2.10 $105,000 88,000 92,000 150,000 $435,000 50,000 40,000 40,000 60,000 190,000 2 3 4 2.20 2.30 2.50 Operating expenses were $150,000, and the company's income tax rate is 40% Prepare comparative condensed income statements for 2017 under FIFO and LIFO GRESA INC. Condensed Income Statements FIFO LIFO Sales Revenues 743400 743400 Cost of Goods Sold Beginning Inventory 14000 14000