[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 Date Activities Jan. 1 Beginning inventory Jan. 19 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 170 units @ $23.50 Units Acquired at Cost 220 units@ $14.50 - $3,190 170 units@ $13.50 = 2,295 340 units@ $13.08 = 4,420 730 units $9,905 200 units @ $23.50 370 units The Company uses a perpetual Inventory system. For specific identification, ending inventory consists of 360 units, where 340 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $2,050 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 0 0 0 0 Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expenso Net Income 0 0 0 0 0 $ 0 $ 0 $ $ 0 LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO 0 0 0 0 Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income 0 0 $ 0 $ 0 $ 0 $ 2. Which method yields the highest net income? Specific identification FIFO LIFO Weighted average ! Required information FIFO OLIFO Weighted average 3. Does net income using weighted average fall between that using FIFO and LIFO? Yes No 4. If costs were rising instead of falling, which method would yield the highest net income? Weighted average FIFO Specific identification LIFO