Use the following information for the Exercises below. The following information applies to the questions displayed below) Laker Company reported the following January purchases and sales data for its only product Units sold at Date Activities Units Acquired at Cost Retail lan 1 Beginning 140 units@ $6.00 -5 840 in. inventory Jan. 10 Sales 100 units a $15 Jan. 20 Purchase 60 units@ $5.00 - 300 Jan. 25 Sales 80 units @ $15 Jan. 30 Purchase 180 units@ $4.50 810 Totals 380 units $1.950 180 units 01213 The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase. 5 are from the January 20 purchase, and 15 are from beginning inventory Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1.250 and that the applicable income tax rate is 40% (Round your intermediate calculations to 2 decimal places.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FO Cost of goods sold Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,250 and that the applicable income tax rate is 40% (Round your Intermediate calculations to 2 decimal places.) Print LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO References 0 0 0 0 Sales Cost of goods sold Gross profit Exponses Income before taxes Income tax expense Not income 0 0 0 0 S 0S 0S 0S 0 2. Which method yields the highest net income? O Specific identification OLIFO O FIFO Weighted average 3. Does net income using weighted average fall between that using FIFO and LIFO? O No O Yes 4. If costs were rising instead of falling, which method would yield the highest net income? O FIFO O Specific identification OLIFO Weighted average