The management of Swifty Corporation 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 2019 if either the FIFO or the LIFO method had been used. For 2019, the accounting records show these data: Inventories Purchases and Sales $21,000 Beginning (10,500 units) Ending (25,500 units) Total net sales (270,000 units) Total cost of goods purchased (285,000 units) $1,120,500 656,250 Purchases were made quarterly as follows. Quarter Units Unit Cost Total Cost 1 $2.05 2 2.20 75,000 60,000 60,000 90,000 $153,750 132,000 141,000 229,500 3 2.35 4 2.55 285,000 $656,250 Operating expenses were $130,000, and the company's income tax rate is 40%. For the Year Ended December 31, 2019 FIFO LIFO Sales Revenues 1120500 1120500 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