Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.) Laker Company reported the following January purchases and sales data for its only product. Units Acquired at Cost 185 units@ $11.00 - $2,035 Units sold at Retail 145 units $20.00 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals 100 units@ $10.00 - 1,000 125 units @ $20.00 270 units 555 unit $ 9.50 - 2,565 $5,600 270 units The Company uses a perpetual Inventory system. For specific identification, ending Inventory consists of 285 units, where 270 are from the January 30 purchase, 5 are from the January 20 purchase, and 10 are from beginning inventory. Exercise 5-6 Perpetual: Income effects of inventory methods LO A1 Required: 1. Complete comparative Income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,700, and that the applicable income tax rate is 40% 2. Which method yields the highest net income? 3. Does net income using weighted average fall between that using FIFO and LIFO? 4. If costs were rising instead of falling, which method would yield the highest net income? Required 1 Required 2 Required 3 Required 4 Complete comparative Income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,700, and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO 0.00 0.00! 0.00 Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Not income 000 0.00 0.001 0.00 $ 0.00 $ 0.00 $ 0.00 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Which method yields the highest net income? Which method yields the highest net income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Does net income using weighted average fall between that using FIFO and LIFO? rences Does net income using weighted average fall between that using FIFO and LIFO? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If costs were rising instead of falling, which method would yield the highest net income? Which method would yield the highest net income?