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. Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Units Acquired at Cost 205 units @ $13.00 = $2,665 Units sold at Retail 165 units @ $22.00 Jan. 20 Purchase 140 units @ $12.00 = Jan. 25 Sales Jan. 30 Purchase 310 units @ $11.50= Totals 655 units 1,680 3,565 $7,910 145 units @ $22.00 310 units The Company uses a perpetual Inventory system. For specific Identification, ending Inventory consists of 345 units, where 310 are from the January 30 purchase, 5 are from the January 20 purchase, and 30 are from beginning Inventory. Exercise 5-4 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 $1,900 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 Sales Cost of goods sold Gross profit Specific Identification Weighted Average FIFO LIFO 0 0 0 0 Expenses Income before taxes 0 0 0 0 Income tax expense Net income $ 0 $ 0 $ 0 $ 0 2. Which method yields the highest net income? O Weighted average O FIFO O Specific Identification O LIFO 3. Does net Income using weighted average fall between that using FIFO and LIFO?