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Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Laker Company reported the following...

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Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning Jan. 10 Sales Jan. 20 Purchase Jan. 25 Sales Jan. 30 Purchase 340 units $10.80$ 3,672 410 units$9.804,018 280 units@ $8.802,464 $10,154 inventory 185 units @$18.80 335 units @$18.80 Totals 1,030 units 520 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 510 units, where 280 are from the January 30 purchase, 80 are from the January 20 purchase, and 150 are from beginning inventory Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $3,500, and that the applicable income tax rate is 35%. (Do not round your Intermediate calculations.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Identification Weighted Average FIFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income 0 0 0 0

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