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Saved Help Save Laker Company reported the following January purchases and sales data for its only product. Units sold at Retail Date Activities Units Acquired at Cost Jan. 1 Beginning inventory 230 units $15.50 - $ 3,565 Jan. 10 Sales Jan. 20 Purchase 190 unitse $14.50 - 2,755 Jan. 25 Sales Jan. 30 Purchase 360 unitse $14.00 = 5,040 Totals 780 units $11,360 180 units & $24.50 220 units $24.50 400 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 380 units, where 360 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory. equired: Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume xpenses are $2,150 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 $ 9,800 FIFO LIFO 9,800 0 0 0 Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income 9,800 0 0 0 $ 9,800 $ 0 $ 0$ 0 Required information 2. Which method yields the highest net income? OLIFO Weighted average O FIFO Specific identification 3. Does net income using weighted average fall between that using FIFO and LIFO? O No O Yes 4. If costs were rising instead of falling, which method would yield the highest net income? OLIFO O FIFO O Weighted average O Specific identification

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