The management of Indigo Corporation asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2022, the accounting records show these data. Inventory, January 1 (9.060 units) $31,710 Cost of 113,780 units purchased 440,483 Sales revenue on 97,160 units 686,100 Operating expenses 122,184 Units purchased consisted of 37,370 units at $3.70 on May 10, 62,360 units at $3.90 on August 15, and 14,050 units at $4.20 on November 20. Income taxes are 30%. Prepare comparative condensed income statements for 2022 under FIFO and LIFO. (Round answers to O decimal places, e.g. 5,125.) Indigo Corporation Condensed Income Statements For the Year Ended December 31, 2022 Sales FIFO 686100 LIFO 686100 Cost of Goods Sold Beginning Inventory 31710 31710 Cost of Goods Purchased 440483 440483 Cost of Goods Available for Sale Y 472193 1 472193 Less Ending Inventory 104367 93204 Cost of Goods Sold Gross Profit Operating Expenses Income before Income Taxes 367826 318274 378989 307111 112184 112184 206,090 194,927 Income Tax Expense 61.827 58.478 Retained Earnines, December 31 144.263 136.449 Answer the following questions for management. (1) Which inventory cost flow method produces the inventory amount that most closely approximates the amount that would have to be paid to replace the inventory? (2) Which inventory cost flow method produces the net income amount that is a more likely indicator of next period's net income? (3) Which inventory cost flow method is most likely to approximate the actual physical flow of the goods? (4) How much more cash will be available under LIFO than under FIFO? $ (5) How much of the gross profit under FIFO is illusionary in comparison with the gross profit under LIFO? $ FIFO method LIFO method FIFO method