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) $35,000 Cost of120,000 units purchased 468,500 Selling price of98,000 units sold 750,000 Operating expenses 124,000 Units purchased consisted of35,000units at $3 70on May 10 60,000units at $3 90on August 15 and25,000units at $4 20on November 20 Income taxes are28 (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 Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues $ $ Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues AddLess Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues $ $

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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

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)	$35,000
Cost of120,000 units purchased	468,500
Selling price of98,000 units sold	750,000
Operating expenses	124,000

Units purchased consisted of35,000units at $3.70on May 10;60,000units at $3.90on August 15; and25,000units at $4.20on November 20. Income taxes are28%.

(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
Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues	$	$
Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues
Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues
Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues
Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues
AddLess:Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues
Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues
Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues
Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues
Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues
Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues
Beginning InventoryCost of Goods Available for SaleCost of Goods PurchasedCost of Goods SoldDividendsEnding InventoryExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesRetained Earnings , January 1Retained Earnings , December 31RevenuesSalesTotal ExpensesTotal Revenues	$	$