a) Prepare comparative income statement b)Are pricing rising or falling 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.

Waterway Store uses a perpetual inventory system. Last year they reported the following results: Sales $ 1,000,000 Sales returns $ 14,000 Sales discounts $ 52.000 Gross profit margin using FIFO 27 96 Gross profit margin using weighted average 28 % Operating expenses $ 205,180 Prepare comparative income statements for both cost formulas. Waterway Store uses a perpetual inventory system. Last year they reported the following results: Sales $ 1,000,000 Sales returns $ 14,000 Sales discounts $ 52.000 Gross profit margin using FIFO 27 96 Gross profit margin using weighted average 28 % Operating expenses $ 205,180 Prepare comparative income statements for both cost formulas