Required information [The following information applies to the questions displayed below.) Income is to be evaluated under four different situations as follows: a. Prices are rising: (1) Situation A: FIFO is used. (2) Situation B: LIFO is used. b. Prices are falling: (1) Situation C: FIFO is used. (2) Situation D: LIFO is used. The basic data common to all four situations are sales, 507 units for $18,759; beginning inventory, 293 units; purchases, 383 units; ending inventory, 169 units; and operating expenses, $3,900. The income tax rate is 40%. Required: 1. Complete the following tabulation for each situation in Situations A and B (prices rising), assume the following: beginning inventory, 293 units at $10 = $2,930; purchases, 383 units at $11 = $4,213. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 293 units at $11 = $3,223; purchases, 383 units at $10 = $3,830.Use periodic inventory procedures. (Round your answers to nearest dollar amount.) PRICES RISING Situation A Situation B FIFO LIFO $ 18,759 $ 18,759 PRICES FALLING Situation C Situation D FIFO LIFO $ 18,759 $ 18,759 Sales revenue Cost of goods sold: Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Expenses Pretax income Income tax expense Net income T 2,930 4,213 7,143 1,859 5.284 13,475 3,900 9,575 3,830 5,745 3,900 3,900 3,900 $ 2. Complete the following sentences: When prices are rising, When prices are falling, the gives a higher net income than effect results. opposite same 3. Complete the following sentence: The relative effects on the cash position for each situation. When prices are rising, (than derives a more favorable cash position the difference in income tax. less than greater than equal to