P2. Inventory (2) P2.1. In what way do different inventory estimation methods affect cash flow? P.2.2. How does the choice of different inventory methods affect the income statement? p.2.3. What is the difference between LIFO and FIFO inventory estimation methods? P.2.4. Which inventory method, in your opinion, is the best and why? P.2.5. The following records show Muriel's company transactions in February 2022: Date Description Units Unit cost Beginning balance 600 $4.50 Feb 2 Purchase 800 $4.75 Feb 7 Purchase 1,200 $4.80 Feb 16 Purchase 550 $5.20 Feb 21 Sale 750 Feb 25 Sale 1,640 Feb 28 Purchase 1,000 $5.50 Assuming periodic inventory system, compute ending inventory and cost of goods sold at the end of February using (a) FIFO, (b) LIFO, and (c) average-cost. Assuming the unit selling price is $10.50, which method will result in the highest income tax expense?