Use the data in Exercises 6-3 and 6-4 to construct comparative income statements for Trout Company (year-end December 31, 2014), similar to those shown in Exhibit 6.8 in the chapter. Assume that operating expenses are $1,250.
1. Which method results in the highest net income?
2. If costs were rising instead of falling, which method would result in the highest net income?
In Exercise 6.3
Trout Company uses a perpetual inventory system and made purchase and sales of a particular product in 2014 as follow: