Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost 165 unitse $9.00 - $1,485 Units sold at Retail Jan. 1 Beginning inventory Jan. 10 Sales 125 units e $18.00 Jan. 20 Purchase 110 unitse $8.00 880 Jan. 25 Sales 125 units @ $18.00 Jan. 30 Purchase 230 unitse $7.50 = 1,725 Totals 505 units $4,090 250 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, 230 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory. Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. expenses are $1,500 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decima LAKER COMPANY Income Statements For Month Ended January 31 Weighted Specific Identification Average FIFO LIFO

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Use the following information for the Exercises below.
[The following information applies to the questions displayed below.]
Laker Company reported the following January purchases and sales data for its only product.
Date
Activities
Units Acquired at Cost
165 unitse $9.00 - $1,485
Units sold at Retail
1 Beginning inventory
Jan.
Jan. 10 Sales
Jan. 20 Purchase
125 units @ $18.00
110 units@ $8.00 -
880
Jan. 25 Sales
125 units @ $18.00
Jan. 30 Purchase
230 unitse $7.50 =
1,725
Totals
505 units
$4,090
250 units
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where
230 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory.
Exercise 5-4 Perpetual: Income effects of inventory methods LO A1
Required:
1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume
expenses are $1,500 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
Weighted
Specific
Identification
Average
FIFO
LIFO
Sales
Cost of goods sold
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Transcribed Image Text:Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost 165 unitse $9.00 - $1,485 Units sold at Retail 1 Beginning inventory Jan. Jan. 10 Sales Jan. 20 Purchase 125 units @ $18.00 110 units@ $8.00 - 880 Jan. 25 Sales 125 units @ $18.00 Jan. 30 Purchase 230 unitse $7.50 = 1,725 Totals 505 units $4,090 250 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where 230 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory. Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,500 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 Weighted Specific Identification Average FIFO LIFO Sales Cost of goods sold < Prev of 5 Next >
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Totals
505 units
$4,090
250 units
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where
230 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory.
Exercise 5-4 Perpetual: Income effects of inventory methods LO A1
Required:
1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume
expenses are $1,500 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)
LAKER COMPANY
Income Statements
For Month Ended January 31
Specific
Weighted
Identification
Average
FIFO
LIFO
Sales
Cost of goods sold
Gross profit
Expenses
Income before taxes
Income tax expense
Net income
24
2$
$
Transcribed Image Text:G Gmail YouTube Maps : Fit3D| Visualize a... BT Fitness| MINI Growth Hormone... modern rugs fo Saved prk i Totals 505 units $4,090 250 units The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 255 units, where 230 are from the January 30 purchase, 5 are from the January 20 purchase, and 20 are from beginning inventory. Exercise 5-4 Perpetual: Income effects of inventory methods LO A1 Required: 1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,500 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.) LAKER COMPANY Income Statements For Month Ended January 31 Specific Weighted Identification Average FIFO LIFO Sales Cost of goods sold Gross profit Expenses Income before taxes Income tax expense Net income 24 2$ $
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