! Required information (The following information applies to the questions displayed below.) Laker Company reported the following January purchases and sales data for its only product. Date Activities Beginning Jan. 1 inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals Units Acquired at Cost Units sold at Retail 185 units @ $11.00 $2,035 145 units @ $20.00 100 units @ $10.00 = 1,000 125 units @ $20.00 270 units @ $ 9.50 = 2,565 555 units $5,600 270 units Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,700, and that the applicable income tax rate is 40%. (Round your average cost per unit to 2 decimal places.) $ Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average $ 5,400 $ 5,400 2,875 2,724 2,525 2,676 1,700 1,700 825 976 330 390 S 495 $ 586 FIFO 5,400 $ 2,885 2,515 1,700 815 326 489 $ LIFO 5,400 2,565 2,835 1,7001 1,135 454 .. 681 $ 2. Which method yields the highest net income? FIFO Specific identification OLIFO Weighted average 3. Does net income using weighted average fall between that using FIFO and LIFO? No Yes 4. If costs were rising instead of falling, which method would yield the highest net income? OLIFO Weighted average FIFO Specific identification