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. The Company uses a periodic inventory system. For specific identification, ending inventory consists of 260 units, where 240 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 160 units @ $8.50 - $1,360 Jan. 10 Sales 120 units @ $17.50 Jan. 20 Purchase 100 units @ $7.50 = 750 Jan. 25 Sales 120 units @ $17.50 Jan. 30 Purchase 240 units @ $7.00 = 1,680 Totals 500 units $3,790 240 units Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,450, 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 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? O FIFO O LIFO O Specific identification Weighted average 3. Does net income using weighted average fall between that using FIFO and LIFO? Yes 4. If costs were rising instead of falling, which method would yield the highest net income? O Specific identification O LIFO FIFO O Weighted average