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 185 units $11.00= $2,035 Jan. 10 Sales 145 units $20.00 100 units $10.00- 1,000 Jan. 20 Purchase Jan. 25 Sales 125 units e $20.00 270 units $ 9.50-2,565 Jan. 30 Purchase Totals 555 units $5,600 270 units Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,700, 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 Average Identification FIFO LIFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense 1 (1) 0 C (1) 0 0 Net income (1) S Required information 2. Which method yields the highest net income? OFIFO O Weighted average O Specific identification OLIFO 3. Does net income using weighted average fall between that using FIFO and LIFO? O Yes ONo 4. If costs were rising instead of falling, which method would yield the highest net income? O LIFO OWeighted average Specific identification Next > of 5 Prev 3 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? OLIFO OWeighted average OSpecific identification OFIFO 3 of 5 MacBook Ar 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 185 units $11.00= $2,035 Jan. 10 Sales 145 units $20.00 100 units $10.00- 1,000 Jan. 20 Purchase Jan. 25 Sales 125 units e $20.00 270 units $ 9.50-2,565 Jan. 30 Purchase Totals 555 units $5,600 270 units Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,700, 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 Average Identification FIFO LIFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense 1 (1) 0 C (1) 0 0 Net income (1) S Required information 2. Which method yields the highest net income? OFIFO O Weighted average O Specific identification OLIFO 3. Does net income using weighted average fall between that using FIFO and LIFO? O Yes ONo 4. If costs were rising instead of falling, which method would yield the highest net income? O LIFO OWeighted average Specific identification Next > of 5 Prev 3 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? OLIFO OWeighted average OSpecific identification OFIFO 3 of 5 MacBook Ar