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 Jan. 1 Beginning inventory Jan. 10 Sales Jan. 2e Purchase Jan. 25 Sales Jan. 30 Purchase Totals Units Acquired at Cost Units sold at Retail 215 units @ $14.ee = $3, ele 165 units @ $23.00 160 units @ $13.ee = 2,880 165 units @ $23.00 330 units @ $12.50 = 4,125 705 units $9,215 330 units For specific identification, ending inventory consists of 375 units, where 330 are from the January 30 purchase, 5 are from the January 20 purchase, and 40 are from beginning inventory Required 1. Prepare comparative income statements for the month of January for Laker Company for the four inventory methods. Assum expenses are $2,000, and that the applicable income tax rate is 40%. 2. Which method yields the highest net income? 3. Does net income using weighted average fall above, between, or below that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest net income? Required 1 Required 2 Required 3 Required 4 Prepare comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $2,000, and that the applicable income tax rate is 40%. (Round your average cost per unit to 2 decimal places.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average Cost of goods sold Gross Draft 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 Exponses Income before taxes Income tax expense Not income 0. 00 0 00 0.00 $ 0.00 Required Required 2 Required 3 Required 4 Part 2 of 2 Which method yields the highest net income? Which method yields the highest net income? Required 1 Required 3 >