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 215 units, where 190 are from the January 30 purchase. 5 are from the January 20 purchase and 20 are from beginning inventory. Activities Units Acquired at Cost units sold at Retail Jan. 1 Beginning inventory 145 units @ $7.00 = $1,015 Jan. 18 Sales 105 units $16.00 Jan. 20 Purchase 70 units@ $6.00 Jan. 25 Sales 85 units@ $16.00 Jan. 30 Purchase 190 units@ $5.50 1.045 Totals 405 units $2,400 190 units Date 420 Required: 1. Complete comparative income statements for the month of January for Loker Company for the four inventory methods. Assume expenses are $1300, 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 Sales Cost of goods sold Gross profit Expenses Income before taxes Incomo tax expense Net income FIFO LIFO 2. Which method yields the highest net income? Specific identification LIFO O FIFO Weighted average 3. Does net income using weighted average fall between that using FIFO and LIFO? O No O Yes 4. If costs were rising instead of falling, which method would yield the highest net income? O FIFO O Weighted average OLIFO Specific identification