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 Aequired at Cost Units sold at Retail Jan. 1 Beginning inventory 150 unitse $7.50 - $1,125 Jan. 10 Sales 110 units $16.50 Jan. 20 Purchase 80 unitse $6.50 - 520 90 units $16.50 Jan. 30 Purchase 200 unite $6.00 - 1,200 Totals 430 units $2,845 200 units Jan. 25 Sales The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 230 upits, where 200 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory. 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,350 and that the applicable income tax rate is 40% (Round your Intermediate calculations 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? :49 Weighted average O FIFO Specific identification OLIFO 3. Does net income using weighted average fall between that using FIFO and LIFO? No Yes 4. If costs were rising instead of falling, which method would yield the highest net income? Weighted average O FIFO Specific identification OLIFO