The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 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 $1,250, and that the applicable income tax rate is 40%.(Round your Intermediate calculations to 2 decimal places.)LAKER COMPANYIncome StatementsFor Month Ended January 31Specific WeightedIdentificationAverageFIFOLIFOSales$2,700 $2,700 $2,700 $2,700Cost of goods sold1,0251,0321,0401,020Gross profit1,6751,6681,6601,680Expenses1,2501,2501,2501,250Income before taxes425418410430Income tax expense170167164172Net income$255$251$246$2582.Which method yields the highest net income?
3.Does net income using weighted average fall between that using FIFO and LIFO?