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 Aequired at Cost Units sold at Retail Jan. 1 Beginning inventory 240 units@ $16.50 - $ 3,960 Jan. 10 Sales 190 units @ $25.50 Jan. 20 Purchase 170 units@ $15.50 - 2,635 Jan. 25 Sales 190 units @ $25.50 Jan. 30 Purchase 380 unitse $15.00 - 5,700 Totala 790 units $12,295 380 units The Company uses a perpetual Inventory system. For specific identification, ending inventory consists of 410 units, where 380 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory. Exercise 5-6 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 $2,250, and that the applicable income tax rate is 40% 2. Which method yields the highest net income? 3. Does net income using weighted average fall between that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest net income? Required 1 Required 2 Required 3 Required 4 Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $2,250, 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 FIFO LIFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income Round Required 2 > 2. Which method yields the highest net income? 3. Does net income using weighted average fall between that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest net income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Which method yields the highest net income? Which method yields the highest net income? i Saved DARinrar. Required information 2. Which method yields the highest net income! 3. Does net income using weighted average fall between that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest net income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Does net income using weighted average fall between that using FIFO and LIFO? Does net income using weighted average fall between that using FIFO and LIFO?