1. Assume you have a worksheet which will be used to prepare financial statements. You see in this worksheet that there is no depreciation adjustment, yet you own a large amount of equipment. Does the absence of a depreciation adjustment should worry you? Explain in your words why or why not. 2. You are analyzing the financial condition of a company to assess its ability to meet upcoming loan payments. You calculate its current ratio as 1.2. You also find that a major portion of accounts receivable is due from one client who has not made any payments in the past 12 months. Remov- ing this receivable from current assets lowers the current ratio to 0.7. What do you conclude? 3. The following adjusted trial balance for Canadian Music School 1 Prepare the closing 7. Gale Company has the following inventory and purchases during the fiscal year ended December 31, 2017 Beginning inventory --- 280 Units at $80/ unit Feb. 10 purchased... 195 Units at $84/unit Feb. 20 sold. 360 Units at $160/unit Mar. 13 purchased 290 Units at $78/ unit Sept. 5 purchased. 255 Units at $64/unit I Oct. 10 sold 510 units at $160/unit I Gale Company employs a perpetual inventory system. Question : 1.Calculate the dollar value of ending inventory and cost of goods sold using: a. FIFO b. Moving weighted average. ch w DELL