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.DateActivitiesUnits Acquired at Cost Units sold at Retail140 units @ $6.00 = $840Jan. 1 Beginning inventoryJan. 10 Sales100 units @ $ 15Jan. 20Purchase60 units @$5.00 =Jan. 25 Sales80 units @ $15Jan. 30 Purchase180 units @ $4.50 =380 unitsTotalsSalesCost of goods soldGross profitThe 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 beginninginventory.ExpensesIncome before taxesIncome tax expenseNet incomeRequired:1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assumeexpenses are $1,250 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)SpecificIdentification$692,7001,0251,6751,250425> Answer is complete but not entirely correct.LAKER COMPANYIncome StatementsFor Month Ended January 31WeightedAverage170255$2,7009241,7761,250526211 X315$300810$1,950$FIFO2,7001,0401,6601,250410164246180 unitsSLIFO$ 2,7008101,8901,250640256384$ 2. Which method yields the highest net income?FIFOSpecific identificationWeighted averageLIFO3. Does net income using weighted average fall between that using FIFO and LIFO?NoYes4. If costs were rising instead of falling, which method would yield the highest net income?Specific identificationLIFOWeighted averageFIFO

Name: Required information[The following information applies to the questio
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: 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.DateActivitiesUnits Acquired at Cost Units sold at Retail140 units @