(Solved by Humans)-Zeigler Company began operations in 20xx.

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Zeigler Company began operations in 20xx. At the beginning of the year, the company purchased plant assets of $900,000, with an estimated useful life of ten years and no residual value. During the year, the company had net sales of $1,300,000, salaries expense of $200,000, and other expenses of $80,000, excluding depreciation. In addition, Zeigler Company purchased inventory as follows: Jan. 15400 units at $400$160,000Mar. 20200 units at $40881,600June 15800 units at $416332,800Sept. 18600 units at $412247,200Dec. 9units at $420300126,000Totalunits2,300$947,600At the end of the year, a physical inventory disclosed 500 units still on hand. The managers of Zeigler Company know they have a choice of accounting methods, but they are unsure how those methods will affect net income. They have heard of the FIFO and LIFO inventory methods and the straight-line and double-declining-balance depreciation methods.Required1. Prepare two income statements for Zeigler Company, one using the FIFO and straight-line methods and the other using the LIFO and double declining- balance methods. Ignore income taxes.2. Prepare a schedule accounting for the difference in the two net income figures obtained in requirement 1.3. User Insight: What effect does the choice of accounting method have on Zeigler’s inventory turnover? What conclusions can you draw? Use the year-end balance to compute the ratio.4. User Insight: How does the choice of accounting methods affect Zeigler’s return on assets? Assume the company’s only assets are cash of $80,000, inventory, and plant assets. Use year-end balances to compute the ratios. Is your evaluation of Zeigler’s profitability affected by the choice of accounting methods?