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 Units Acquired at cost Units sold at Retail Jan. 1 Beginning inventory 145 units $7.00 - $1,015 Jan. 10 sales 105 units . $16.00 Jan. 20 Purchase 70 unitse $6.00 420 Jan. 25 Sales 85 units $16.00 Jan. 30 Parehase 190 unitse 35.50 -1.045 405 units Totale $2,400 190 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 215 units, where 190 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 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 $1,300 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 LIFO FIFO 0 O 0 O Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net Income 0 0 0 $ 0 $ os $ 2. Which method yields the highest net income? OLIFO O Weighted average Specific identification O FIFO 3. Does net income using weighted average fall between that using FIFO and LIFO? O No Yes 4. If costs were rising instead of falling, which method would yield the highest net income? O FIFO Specific identification Weighted average OLIFO GO 3