Daniel Company uses a periodic inventory system. Data for 2015: beginning merchandise inventory (December 31, 2014), 2,080 units at $36; purchases, 7,960 units at $38; expenses (excluding income taxes), $192,700; ending inventory per physical count at December 31, 2015, 1,730; sales, 8,310 units; sales price per unit, $76; and average income tax rate, 34 percent

Compute cost of goods sold and prepare income statements under the FIFO, LIFO, and average cost inventory costing methods. (Do not round your intermediate calculations.)

Inventory Costing Method
Cost of Goods Sold	Units	FIFO	LIFO	Average Cost
Beginning inventory	2,080	$74,880	$74,880	$74,880
Purchases	7,960	302,480	302,480	302,480
Goods available for sale	10,040	377,360	377,360	377,360
Ending inventory	1,730	65,740	62,280
Cost of goods sold	8,310	$311,620	$315,080

Income Statement	FIFO	LIFO	Average Cost

Between FIFO and LIFO, which method is preferable in terms of (a) net income and (b) income taxes paid (cash flow)?

Net income
Income taxes paid