Required information [The following information applies to the questions displayed below.] Income is to be evaluated under four different situations as follows: a. Prices are rising: (1) Situation A: FIFO is used. (2) Situation B: LIFO is used. b. Prices are falling: (1) Situation C: FIFO is used. (2) Situation D: LIFO is used. The basic data common to all four situations are sales, 509 units for $19,851; beginning inventory, 285 units; purchases, 386 units; ending inventory, 162 units; and operating expenses, $3,800. The income tax rate is 35%. Required: 1. Complete the following tabulation for each situation in Situations A and B (prices rising), assume the following: beginning inventory, 285 units at $8 = $2,280; purchases, 386 units at $9 = $3,474. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 285 units at $9 = $2,565; purchases, 386 units at $8 = $3,088.Use periodic inventory procedures. (Round your answers to nearest dollar amount.) PRICES RISING PRICES FALLING Situation A FIFO Situation B LIFO Situation C FIFO Situation D LIFO Sales revenue $ 19,851 $ 19,851 $ 19,851 $ 19,851 Cost of goods sold: Beginning inventory 2,280 Purchases 3,474 Goods available for sale 5,754 Ending inventory 1,458 Cost of goods sold 4,296 Gross profit 15,555 Expenses 3,800 3,800 3,800 3,800 Pretax income 11,755 Income tax expense 4,114 Net income $ 7,641 2. Complete the following sentences: When prices are rising, gives a higher net income than When prices are falling, the effect results. 3. Complete the following sentence: The relative effects on the cash position for each situation. When prices are rising, (than derives a more favorable cash position the difference in income tax