value: 3.80 points Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Laker Company reported the following January purchases and sales data for its only product. Activities Date Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Units Sold at Retail 150 units @$17.40 265 units @$17.40 Units Acquired at Cost 270 units @ $9.40=$2,538 340 units @ $8.40-2.856 210 units @ $7.40= 1,554 820 units Totals $6,948 415 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 405 units, where 210 are from the January 30 purchase, 80 are from the January 20 purchase, and 115 are from beginning inventory Required 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $2,800, and that the applicable income tax rate is 30%. (Do not round your Intermediate calculations.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Identification Weighted Average FIFO LIFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income value: 3.80 points Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Laker Company reported the following January purchases and sales data for its only product. Activities Date Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Units Sold at Retail 150 units @$17.40 265 units @$17.40 Units Acquired at Cost 270 units @ $9.40=$2,538 340 units @ $8.40-2.856 210 units @ $7.40= 1,554 820 units Totals $6,948 415 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 405 units, where 210 are from the January 30 purchase, 80 are from the January 20 purchase, and 115 are from beginning inventory Required 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $2,800, and that the applicable income tax rate is 30%. (Do not round your Intermediate calculations.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Identification Weighted Average FIFO LIFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income