The management of Whispering Winds Corp. 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 (9,730 units) Cost of 109,680 units purchased $ 35,028 435,650 Sales revenue on 90,440 units 813,000 Operating expenses 135,738 Units purchased consisted of 35,330 units at $3.80 on May 10, 61,030 units at $4.00 on August 15, and 13,320 units at $4.30 on November 20. Income taxes are 30%. (a) Your answer is correct. Prepare comparative condensed income statements for 2022 under FIFO and LIFO. (Round answers to O decimal places, e.g. 5,125.) Whispering Winds Corp. Condensed Income Statements For the Year Ended December 31, 2022 Sales Cost of Goods Sold Beginning Inventory Cost of Goods Purchased FIFO 813000 LIFO 813000 35028 35028 i 435650 435650 i Cost of Goods Available for Sale 470678 470678 Less Ending Inventory (119,876) (108140) i Cost of Goods Sold Gross Profit 350802 462198 362538 450462 Cost of Goods Available for Sale 470678 470678 Less v Ending Inventory (119,876) (108140) Cost of Goods Sold Gross Profit Operating Expenses Income before Income Taxes Income Tax Expense Net Income/(Loss) eTextbook and Media (b) Answer the following questions for management. 350802 462198 135738 326460 97938 228522 362538 450462 135738 i 314724 94417 i 220307 Attempts: 2 of 5 used (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? FIFO method (2) Which inventory cost flow method produces the net income amount that is a more likely indicator of next period's net income? tIFO method (3) Which inventory cost flow method is most likely to approximate the actual physical flow of the goods? FIFO method (4) How much more cash will be available under LIFO than under FIFO? (5) How much of the gross profit under FIFO is illusionary in comparison with the gross profit under LIFO? eTextbook and Media