1. Here are incomplete financial statements for Ready, Inc. READY, INC. 2. The Falcon Company is located in Istanbul. In recent years, it has made a Balance Sheet ($) series of strategic acquisitions to grow and enhance its market-leading positions in each of its three business segments. These include: cranes and Assets Liabilities and Stockholders' Equity Cash 10,500 Liabilities related products (crawler cranes, tower cranes, and bottom trucks), food Inventory 15,000 Accounts Payable 7,500 service equipment (commercial ice-cube machines, ice-beverage dispensers, Buildings 67,500 and commercial refregiration equipment), and marine operations Total Assets (a) Stockholders' Equity (shipbuilding and ship-repair services). The company reported inventory of $ Common Stock 668.7 million for 2018 and of $ 558.8 million for 2017. Retained Earnings ( c ) Total Liabilities and Stockholders' Equity 93,000 Here is the inventory note taken from the 2018 financial statements. - 50 points - THE FALCON COMPANY Income Statement ($) Notes to the Financial Statements Revenues 127,500 Cost of goods sold (d) Inventories: The components of inventories at December 31 are summarized as Salaries and wages expense 15,000 follows (in millions). Net income (e) 2018 2017 Inventories-gross Raw materials $ 249.7 $ 223.9 Retained Earning Statement ($) Work-in-process 168.1 119.8 Begining retained earnings 18,000 Finished goods 357.6 326.4 Add. Net Income (e) Total 775.4 670.1 Less. Dividends 7,500 Ending retained earnings 40,500 Less. Excess and obsolete inventory reserve (75.3) (80.3) Net inventories at FIFO cost 700.1 589.8 Instructions Less. Excess of FIFO costs over LIFO value (31.4) (31.0)Inventories - net (as reported on balance sheet) $ 668.7 $ 558.8 FALCON carries inventory at the lower-of-cost-or-market using the first-in, first-out (FIFO) method for approximately 89% and 87% of total inventory for 2018 and 2017, respectively. The remainder of the inventory is costed using the last-in, first out (LIFO) method. Additional facts. 2018 Current liabilities $ 1, 104.6 2018 Current assets (as reported) 1,239.8 2018 Cost of goods sold 2,813.9 Instructions; Answer the following questions - 50 points -. a) Why does the company report its inventory in three components? 15 points b) Why might the company use two methods (LIFO and FIFO) to account for its inventory? 15 points c) Calculate the inventory turnover and days in inventory using the LIFO inventory. 20 points