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. Units sold at Retail Units Acquired at Cost 230 units $15.50 - $ 3,565 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 180 units @ $24.50 190 units $14.50 - 2,255 220 units @ $24.50 360 units $14.00 - 780 units 5,040 $ 11,360 Totals 400 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 380 units, where 360 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $2,150 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.) Answer is complete but not entirely correct. LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average 9,800$ 9,800 lol FIFO LIFO 9,800$ 9,800 6.015 5,824 6,030 5,620 X 3.976 3.785 2.150 3.770 2.150 4,180 2.150 Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net Income 2,150 1.635 1,826 1.620 2.030 654 730 648 812 981 1,096 $ 972 $ 1.218 2. Which method yields the highest net income? Weighted average Specific identification OLIFO O FIFO 3. Does net income using weighted average fall between that using FIFO and LIFO? Yes O No 4. If costs were rising instead of falling, which method would yield the highest net income? Specific identification FIFO Weighted average LIFO