Required informatio Use the following information for the Exercises below [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Units sold at Activities Units Acquired at Cost Date Jan. 1 Beginning inventory 140 units @ $6.00= $ 840 Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Retail 100 unitse $15 80 units e 15 60 units $5.00 300 180 units e 4.50 380 units 810 Totals $1,950 180 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Exercise 5-4 Perpetual: Income effects of inventory methods LO AT Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,250, and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Identification Weighted Average FIFO LIFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income 2. Which method yields the highest net income? O Specific identification O LIFO OWeighted average OFIFO 3. Does net income using weighted average fall between that using FIFO and LIFO? O No O Yes 4. If costs were rising instead of falling, which method would yield the highest net income? O FIFO O Specific identification Weighted average