Laker Company reported the following January purchases and sales data for its only product. ...
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Accounting
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
185
units
@
$
11.00
=
$
2,035
Jan.
10
Sales
145
units
@
$
20.00
Jan.
20
Purchase
100
units
@
$
10.00
=
1,000
Jan.
25
Sales
125
units
@
$
20.00
Jan.
30
Purchase
270
units
@
$
9.50
=
2,565
Totals
555
units
$
5,600
270
units
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 285 units, where 270 are from the January 30 purchase, 5 are from the January 20 purchase, and 10 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 $1,700, and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)
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