Question 5 of 5 -/2 View Policies Current Attempt in Progress The management of Bonita 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 If either the FIFO or the LIFO method had been used. For 2020, the accounting records show these data: Inventories Purchases and Sales $24,000 Total net sales (185,000 units) ) $952,750 Beginning (8,000 units) Ending (13.000 units) Total cost of goods purchased (190,000 units) 656,000 Purchases were made quarterly as follows. Quarter Units Unit Cost Total Cost 1 50,000 $3.20 $160,000 2 40.000 3.35 134.000 3 40.000 3.50 140.000 4 60.000 3.70 222,000 190,000 $656,000 Operating expenses were $150,000, and the company's income tax rate is 40%. (a) ) Prepare comparative condensed income statements for 2020 under FIFO and LIFO. BONITA INC. Condensed Income Statements For the Year Ended December 31, 2020 FIFO LIFO Sales Revenues V $ 952.750 $ 952,750 Cost of Goods Sold Beginning Inventory 24.000 24,000 Cost of Goods Purchased 656.000 654,000 Cost of Goods Available for Sale 600.000 6B0.000 Ending Inventory 48.100 Cost of Goods Sold Gross Pront/(Loss) Operating Expenses Income before Income Taxes Income Tax Expense Net Income /(Loss! $ $ e Textbook and Media Assistance Used