The management of Gresa Inc. requests your help in determining the results of operations for 2017 if either the FIFO or the LIFO method has been used. The company is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. For 2017, the accounting records show these data:

Inventories Purchases and Sales
Beginning (10,000 units) $ 20,000 Total net sales (239,000 units) $ 1,087,450
Ending (21,000 units) Total cost of goods purchased (250,000 units) 596,500
Purchases were made quarterly as follows.

Quarter Units Unit Cost Total Cost
1 65,000 $ 2.20 $ 143,000
2 55,000 2.30 126,500
3 55,000 2.40 132,000
4 75,000 2.60 195,000
250,000 $ 596,500
Operating expenses were $100,000, and the company's income tax rate is 40%.

Prepare comparative condensed income statements for 2017 under FIFO and LIFO.

GRESA INC.
Condensed Income Statements
For the Year Ended December 31, 2017
FIFO LIFO
Sales Revenue $ 1,087,450 $ 1,087,450
Cost of Goods Sold
Beginning Inventory 20,000 20,000
Cost of Goods Purchased 596,500 596,500
Cost of Goods Available for Sale
Ending Inventory
Cost of Goods Sold
Gross Profit / (Loss)
Operating Expenses
Income before Income Taxes
Income Tax Expense
Net Income / (Loss)