2 6. Your friend Pablo owns company called "Essential Eats" (EE for short). EE makes baked goods using a free community kitchen. Pablo sells them at a local weekly sport park meet up. The sports park provides plates, napkins etc. This is a pretty good deal for Pablo as he only pays for the ingredients he uses to do the baking and a little bit of advertising.He said if he had to pay for the kitchen it would cost another $150 and the supplies like plates and napkins would add another $100.He sold $1,400 worth of baked goods this week. The ingredients cost him $500 and his advertising was $100. How much should Pablo show as cost of goods sold expense on his financial statements? 1 7. Your friend Faith has been comparing financial statements for companies that produce and sell soda. She noticed that both of them classify shipping costs between factories and warehouses as part of cost of goods sold. However, company A classifies shipping to customers as cost of goods sold and company B treats the same costs as selling, general and administrative. She is confused about why shipping costs would be treated differently within a firm or across firms. She is trying to figure out who is correct. From the following options, which is most likely? A is correct. Both are correct. B is correct. Neither is correct