View Policies Show Attempt History Current Attempt in Progress Coronado Store uses a perpetual inventory system. Last year they reported the following results: Sales Sales returns Sales discounts Gross profit margin using FIFO $ 960,000 $ 11,000 $ 51,000 28 % 29 % Gross profit margin using weighted average Operating expenses $ 209,440 Prepare comparative income statements for both cost formulas. Coronado Store Condensed Income Statements FIFO Weighted average Sales 960,000 960,000 Less V Sales Returns 11.000 11000 1 Sales Discounts 51,000 51.000 Net Sales 898.000 898.000 Cost of Goods Sold 646,560 637,580 Gross Profit 251.440 -260,420 Operating Expenses 209,440 209.440 $ Net Profit/(Loss) 42.000 VA 50.980 (b) Your answer is correct. Are prices rising or falling? Prices are falling e Textbook and Media Attempts: 1 of 3 used (c) Indicate, by using lower, for higher, and same, how.comparatively, the following income statement and balance sheets amounts will be impacted by the choice of inventory cost formula during a time of falling prices. FIFO Weighted average Cost of goods sold Gross profit and profit > Ending inventory