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Required information [The following information applies to the questions displayed below.) Laker Company reported the following January purchases and sales data for its only product Unit sold at Retail 100 unita e 315 Date Activities Units Acquired at cost Jan. 1 Beginning inventory 140 unita e $6.00 - $ 840 Jan. 10 Sales Jan. 20 Purchase 60 units $5.00 - 300 Jan. 25 Sales Jan. 30 Purchase 180 unitse $4.50 Totals 380 units $1,950 80 units @ $15 810 180 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 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 $1,250 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 Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net Income 2. Which method yields the highest net income? O FIFO O Weighted average O Specific identification OLIFO 3. Does net income using weighted average fall between that using FIFO and LIFO? O Yes O No 4. If costs were rising instead of falling, which method would yield the highest net income? Specific identification OLIFO Weighted average O FIFO

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