Evaluating the choice among three alternative inventory methods based on cash flow effects lo7-2, 7-3following is partial information for the income statement of audio solutions company under three different inventory costing methods, assuming the use of a periodic inventory system: required: 1. compute cost of goods sold under the fifo, lifo, and average cost inventory costing methods. (do not round intermediate calculations.)cogsbeg inventory (400 units @ $28)purchases (475 units @35)goods availableending inventory (525)cogs2. prepare an income statement through pretax income for each method. sales, 350 units; unit sales price, $50; expenses, $1,700need preparing income statement3. rank the three methods in order of income taxes paid (favorable cash flow).