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 Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 155 units@ $8.00 = $1,240 Jan. 18 Sales 115 units @ $17.00 Jan. 20 Purchase 98 units@ $7.00 = 630 Jan. 25 Sales 95 units @ $17.80 Jan. 30 Purchase 210 units@ $6.50 = 1, 365 Totals 455 units $3,235 210 units The Company uses a perpetual Inventory system. For specific identification, ending Inventory consists of 245 units, where 210 are from the January 30 purchase. 5 are from the January 20 purchase, and 30 are from beginning Inventory Required: 1. Complete comparative Income statements for the month of January for Laker Company for the four Inventory methods. Assume expenses are $1.400 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 Weighted Identification 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? Specific Identification O FIFO OLIFO Weighted average 3. Does net Income using welghted average fall between that using FIFO and LIFO? O No Yes 4. If costs were rising Instead of falling, which method would yield the highest net Income? OLIFO O FIFO Specific Identification o Weighted average