RCES 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: Inventaries Beginning (10.000) $20.000 net sales 22.000 Ending (21,000 units) 2002,450 596,500 1 Purchases were made quarterly as follows. Quarter Units Unit Cost Total Cou 65,000 2,20 14,000 2 55,000 2.40 132,000 25,000 250,000 3 . Operating expenses were $100,000, 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 Answer the following questions for management. Which cost flow method (FIFO or LIFO) produces the (1) more meaningful inventory amount for the balance sheet? 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 flow of goods? How much more cash will be available for management under LIFO than under FIFO? (2) (3)