Required information
Use the following information for the Exercises below.
[The following information applies to the questionsdisplayed below.]
Laker Company reported the following January purchases and salesdata for its only product.
| Date | | Activities | Units Acquired at Cost | Units sold at Retail |
| Jan. | 1 | | Beginning inventory | 155 | units | @ | $ | 8.00 | = | $ | 1,240 | | | | | | | |
| Jan. | 10 | | Sales | | | | | | | | | | 115 | units | @ | $ | 17.00 | |
| Jan. | 20 | | Purchase | 90 | units | @ | $ | 7.00 | = | | 630 | | | | | | | |
| Jan. | 25 | | Sales | | | | | | | | | | 95 | units | @ | $ | 17.00 | |
| Jan. | 30 | | Purchase | 210 | units | @ | $ | 6.50 | = | | 1,365 | | | | | | | |
| | | Totals | 455 | units | | | | | $ | 3,235 | | 210 | units | | | | |
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The Company uses a perpetual inventory system. For specificidentification, ending inventory consists of 245 units, where 210are from the January 30 purchase, 5 are from the January 20purchase, and 30 are from beginning inventory.
Exercise 5-4 Perpetual: Income effects of inventory methods LOA1
Required:
1. Complete comparative income statements for the month ofJanuary for Laker Company for the four inventory methods. Assumeexpenses are $1,400 and that the applicable income tax rate is 40%.(Round your Intermediate calculations to 2 decimalplaces.)
