Required information Use the following information for the Exercises below. [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 140 units @ Units Acquired at Cost 180 units @ $10.50 = $1, 890 110 units @ $ 9.50 = 1,045 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Tot als $19.50 ces 130 units @ $19.50 $ 9.00 = 260 units @ 550 units 2,340 $5, 275 270 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 280 units, where 260 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. Exercise 6-4 Perpetual: Income effects of inventory methods LO A1 Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,650, 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 L IFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income 0 $ 2. Which method yields the highest net income? LIFO Specific identification Weighted average FIFO 3. Does net income using weighted average fall between that using FIFO and LIFO? Yes 4. If costs were rising instead of falling, which method would yield the highest net income? Weighted average FIFO LIFO Specific identification