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 165 units @ $9.00 = $1,485 Jan. 10 Sales 125 units@ $18.ee Jan. 20 Purchase 110 units @ $8.00 = 880 Jan. 25 Sales 125 units $18.00 250 units @ $7.50 - 1,875 Totals 525 units $4,249 250 units Jan. 30 Purchase Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,500, and that the applicable income tax rate is 40% (Round your average cost per unit to 2 decimal places.) VOL ME MIRAMLI ME Required information Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income Income Statements For Month Ended January 31 Specific Weighted Identification Average $ 4,500 $ 4,500 $ 2,145 2,355 4,500 1,500 1,500 855 3,000 342 $ 513 $ 3,000 $ FIFO LIFO 4,500 $ 4,500 2,165 2,335 4,500 1,500 1,500 835 3,000 334 501 $ 3,000 2. Which method vields the highest net income? of 2 2. Which method yields the highest net income? O FIFO Weighted average LIFO Specific identification ces 3. Does net income using weighted average fall between that using FIFO and LIFO? Yes O No 3. Does net income using weighted average fall between that using FIFO and LIFO? Yes ONo 4. If costs were rising instead of falling, which method would yield the highest net income? Specific identification FIFO Weighted average OLIFO