E7-9 (Algo) Evaluating the Choice among Three Alternative Inventory Methods Based on Cash Flow Effects L07-2, 7-3 Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic inventory system: Required: 1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. 2. Prepare an income statement through pretax income for each method. Sales, 323 units; unit sales price, \$52; Expenses, \$1,560 3. Rank the three methods in order of income taxes paid (favorable cash flow - that is, rank the method as 1 if it produces the lowest taxes, and 3 if it produces the highest taxes.). Complete this question by entering your answers in the tabs below. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. Note: Round intermediate calculations to 2 decimal places. Round your answers to the nearest whole dollar amount. Prepare an income statement through pretax income for each method. Sales, 323 units; unit sales price, $52; Expenses, $1,560 Note: Use the COGS amount from Required 1. Rank the three methods in order of income taxes paid (favorable cash flow). E7-9 (Algo) Evaluating the Choice among Three Alternative Inventory Methods Based on Cash Flow Effects L07-2, 7-3 Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic inventory system: Required: 1. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. 2. Prepare an income statement through pretax income for each method. Sales, 323 units; unit sales price, \$52; Expenses, \$1,560 3. Rank the three methods in order of income taxes paid (favorable cash flow - that is, rank the method as 1 if it produces the lowest taxes, and 3 if it produces the highest taxes.). Complete this question by entering your answers in the tabs below. Compute cost of goods sold under the FIFO, LIFO, and average cost inventory costing methods. Note: Round intermediate calculations to 2 decimal places. Round your answers to the nearest whole dollar amount. Prepare an income statement through pretax income for each method. Sales, 323 units; unit sales price, $52; Expenses, $1,560 Note: Use the COGS amount from Required 1. Rank the three methods in order of income taxes paid (favorable cash flow)