The management of Lily Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average cost. The company requests your help in determining the results of operations for 2022 if either the FIFO or the LIFO method had been used. For 2022, the accounting records show these data Inventories Beginning (8,000 units) Ending (12,000 units) $32,000 Purchases and Sales Total net sales (186,000 units) Total cost of goods purchased (190.000 units) $1,143.900 846,000 Purchases were made quarterly as follows. Quarter Unit Cost Total Cost Units 50,000 1 $4.20 $210,000 2 40,000 4.35 174,000 3 40,000 4.50 180,000 4 4 60,000 4.70 282,000 190,000 $846,000 Operating expenses were $120,000, and the company's income tax rate is 40%. Prepare comparative condensed income statements for 2022 under FIFO and LIFO. LILY INC. Condensed Income Statements For the Year Ended December 31, 2022 FIFO LIFO Sales Revenues $ ta $ Cost of Goods Sold Beginning Inventory Cost of Goods Purchased Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold Beginning Inventory Cost of Goods Purchased Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit/(Loss) Operating Expenses Income before Income Taxes Income Tax Expense $ Net Income /(Loss) Answer the following questions for management, (1) Which cost flow method (FIFO or LIFO) produces the more meaningful inventory amount for the balance sheet? (2) Which cost flow method (FIFO or LIFO) produces the more meaningful net income? (3) Which cost flow method (FIFO or LIFO) is more likely to approximate the actual physical flow of goods? (4) How much more cash will be available for management under LIFO than under FIFO? (5) Will gross profit under the average cost method be higher or lower than FIFO? Will gross profit under the average-cost method be higher or lower than LIFO