The management of Wildhorse Co. 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 ( 10,880 units)		$ 36,992
Cost of 124,420 units purchased		474,364
Selling price of 91,760 units sold		818,100
Operating expenses		127,444

Units purchased consisted of 35,150 units at $ 3.60 on May 10, 60,610 units at $ 3.80 on August 15, and 28,660 units at $ 4.10 on November 20. Income taxes are 30%.

Prepare comparative condensed income statements for 2022 under FIFO and LIFO. (Round answers to decimal places, e.g. 5,125.) Wildhorse Co. Condensed Income Statements FIFO LIFO $ $ $ $ Answer the following questions for management. (2) 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? Which inventory cost flow method produces the net income amount that is a more likely indicator of next period's net income? Which inventory cost flow method is most likely to approximate the actual physical flow of the goods? How much more cash will be available under LIFO than under FIFO? (3) (4) $ $ (5) How much of the gross profit under FIFO is illusionary in comparison with the gross profit under LIFO? $