Required information [The following information applies to the questions displayed below.] Daniel Company uses a periodic inventory system. Data for 2015: beginning merchandise inventory (December 31, 2014), 2,130 units at $35; purchases, 7,890 units at $37; expenses (excluding income taxes), \$192,600; ending inventory per physical count at December 31,2015,1,690; sales, 8,330 units; sales price per unit, $76; and average income tax rate, 31 percent. Required: 1. Compute cost of goods sold and prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Do not round your intermediate calculations.) Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow)? 3. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow), assuming that prices were falling