Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,300 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)
Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,300 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
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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 inventory | 145 | units | @ | $ | 7.00 | = | $ | 1,015 | ||||||||
| Jan. | 10 | Sales | 105 | units | @ | $ | 16.00 | |||||||||||
| Jan. | 20 | Purchase | 70 | units | @ | $ | 6.00 | = | 420 | |||||||||
| Jan. | 25 | Sales | 85 | units | @ | $ | 16.00 | |||||||||||
| Jan. | 30 | Purchase | 190 | units | @ | $ | 5.50 | = | 1,045 | |||||||||
| Totals | 405 | units | $ | 2,480 | 190 | units | ||||||||||||
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 215 units, where 190 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 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 $1,300 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)
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