Laker Company reported the following January purchases and salesdata for its only product. Date Activities Units Acquired at CostUnits sold at Retail Jan. 1 Beginning inventory 230 units @ $ 15.50= $ 3,565 Jan. 10 Sales 180 units @ $ 24.50 Jan. 20 Purchase 190units @ $ 14.50 = 2,755 Jan. 25 Sales 220 units @ $ 24.50 Jan. 30Purchase 360 units @ $ 14.00 = 5,040 Totals 780 units $ 11,360 400units The Company uses a perpetual inventory system. For specificidentification, ending inventory consists of 380 units, where 360are from the January 30 purchase, 5 are from the January 20purchase, and 15 are from beginning inventory. Exercise 5-4Perpetual: Income effects of inventory methods LO A1 Required: 1.Complete comparative income statements for the month of January forLaker Company for the four inventory methods. Assume expenses are$2,150, and that the applicable income tax rate is 40%. (Round yourIntermediate calculations to 2 decimal places.) 2.Which method yields the highest net income?
