W algorithmic 20pts Seved Help Save & Exit Check Laker Company reported the following January purchases and sales data for its only product. Date Activities Jan. 1 Beginning 2 of 2 Inventory Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase Totals Units Acquired at Cost Units sold at Retail 205 unita $13.00 - $2,665 165 units $22.00 140 units $12.00 - 1,680 145 units $22.00 310 units $11.50 - 3,565 655 units $7,910 310 units Required: 1. Complete comparative Income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,900, and that the applicable income tax rate is 40% (Round your average cost per unit to 2 decimal places.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO L IFO 3 Cost of goods sold Gross profit 895 (3,895) 1900 (5.795) 3.925 (3.925) 1.000 (5.825) 0 1.000 (1.900) 3,565 (3,565) 1.000 (5.465) Expenses Income before taxes Income tax expense Net income $ (5.795) $ 1.900 (5.825) $ (5.465) Required information 2. Which method yields the highest net income? COM AN Specific identification Weighted average FIFO LIFO 3. Does net income using weighted average fall between that using FIFO and LIFO? ences Yes O No 4. If costs were rising instead of falling, which method would yield the highest net income? O FIFO Specific identification OLIFO Weighted average