The management of Tinker Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2014, the accounting records show these data?

The management of Tinker Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2014, the accounting records show these data Inventory, January 1 (10,000 units) Cost of 120,000 units purchased Selling price of 98,000 units sold Operating expenses $35,000 468,500 750,000 124,000 Units purchased consisted of 35,000 units at $3.70 on May 10; 60,000 units at $3.90 on August 15; and 25,000 units at $4.20 on November 20, Income taxes are 28% (a) Prepare comparative condensed income statements for 2014 under FIFO and LIFO TINKER, INC. Condensed Income Statements For the Year Ended December 31, 2014 FIFO LIFO Sales 750,000 750,000 Cost of Goods Sold 35,000 468,500 503500 132300 35,000 468,500 503500 Beginning Inventory Cost of Goods Purchased Cost of Goods Available for Sale Less Ending Inventory (123000) Cost of Goods Sold 371200 371200 Gross Profit 378800 124000 2548001 378800 124000 245500 Operating Expenses Income before Income Taxes Income Tax Expense 71344 (68740) Net Income/(Loss) 183456| 176760