The management of Shamrock, Inc. 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 (10,580 units)		$ 40,204
Cost of 125,110 units purchased		526,725
Sales revenue on 101,860 units		777,400
Operating expenses		136,216

Units purchased consisted of 37,080 units at $4.00 on May 10, 59,100 units at $4.20 on August 15, and 28,930 units at $4.50 on November 20. Income taxes are 30%.

(a)

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Prepare comparative condensed income statements for 2022 under FIFO and LIFO. (Round answers to 0 decimal places, e.g. 5,125.)

Shamrock, Inc. Condensed Income Statements choose the accounting period For the Year Ended December 31, 2022For the Quarter Ended December 31, 2022December 31, 2022
	FIFO		LIFO
select an opening name for this statement Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues	$enter a dollar amount		$enter a dollar amount
select an opening name for section one Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues
select an income statement item Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues	enter a dollar amount		enter a dollar amount
select an income statement item Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues	enter a dollar amount		enter a dollar amount
select an income statement item Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues	enter a dollar amount		enter a dollar amount
select between addition and deduction AddLess: select an income statement item Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues	enter a dollar amount		enter a dollar amount
select a closing name for section one Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues	enter a total of section one		enter a total of section one
select a summarizing line for the first part Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues	enter a total amount for the first part		enter a total amount for the first part
select an opening name for section two Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues	enter a dollar amount		enter a dollar amount
select an income statement item Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues	enter a dollar amount		enter a dollar amount
select an income statement item Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues	enter a dollar amount		enter a dollar amount
select a closing name for this statement Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings, January 1Retained Earnings, December 31RevenuesSalesTotal Revenues	$enter a total net income or loss amount		$enter a total net income or loss amount

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(b)

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Your answer is partially correct.

I ONLY NEED ANSWER TO #4 AND #5 BELOW! THANK YOU

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?		select a method FIFO methodLIFO methodAverag-cost method
(2)		Which inventory cost flow method produces the net income amount that is a more likely indicator of next periods net income?		select a method Averag-cost methodFIFO methodLIFO method
(3)		Which inventory cost flow method is most likely to approximate the actual physical flow of the goods?		select a method FIFO methodLIFO methodAverag-cost method
(4)		How much more cash will be available under LIFO than under FIFO?		$enter a dollar amount
(5)		How much of the gross profit under FIFO is illusionary in comparison with the gross profit under LIFO?		$enter a dollar amount