The following information applies to the questions displayed below. Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,200 units at $37; purchases, 7,950 units at $39; expenses (excluding income taxes), $193,400; ending inventory per physical count at December 31, current year, 1,720 units; sales, 8,430 units; sales price per unit, $76; and average income tax rate, 34 percent. value: Required information 8.00 points Required 1. Compute cost of goods sold and prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Round your final answers to nearest whole dollar. Do not round your intermediate calculations.) Inventory Costing Method Cost of Goods Sold Units FIFO LIFO Average Cost Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Income Statement FIFO LIFO Cost value: 8.00 points 2. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow)? Net income Income taxes paid References eBook & Resources Worksheet Learning Objective: 07-02 Report inventory and cost of goods sold using the four inventory costing methods Difficulty: 2 Medium Learning Objective: 07-03 Decide when the use of different inventory costing methods is beneficial to a company Check my work value: 8.00 points 3. Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow), assuming that pr en prices are falling, the opposite effect occurs and less favorable cash flow than does produces higher net income