1-1. Heilig-Meyers Company is one of the largest furniture retailers in the United States. Until March 1, 20X7, like other major retailers, Heilig-Meyers recognized revenue upon determination of the availability of merchandise, establishment of delivery date, and (when applicable) approval of customer credit. Required: a) Critique the revenue recognition method used by Heilig-Meyers Company. b) Effective March 1, 20X7, the company changed its revenue recognition to record merchandise sales upon delivery. Describe the effects of the change in accounting method on the company's income statement, balance sheet, and statement of cash flows. c) Concurrent with the change in accounting method, Heilig-Meyers stated that it would continue to report monthly sales based on orders written rather than on orders delivered. Discuss the advantages and disadvantages from the analyst perspective of reporting monthly orders rather than recognized sales