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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

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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 Units Acquired at Cost 140 units @ $6.00 - $ 840 100 units @ $15 Date Activities Jan. 1 Beginning inventory Jan, 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 60 units @ $5.00 = 300 80 units @ $15 180 units @ $4.50 = 380 units 810 $1,950 180 units The Company uses a perpetual Inventory system. For specific identification, ending inventory consists of 200 units, where 180 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 $1,250 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.) LAKER COMPANY Income Statements MarBook Rom er 06 Accounting Problems i Saved TOUGLE U Ule Jahudiy su purchase, allure January 20 Willide, nu are neynirly HIVERY Exercise 6-4 Perpetual: Income effects of inventory methods LO A1 of 2 Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,250 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 int FIFO LIFO cences Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net Income 2. Which method yields the highest net income? $ Next >

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