3. Calculate Ending Equity given the following: Beginning Total Equity 12/31/2018 275,000 1,000 15,000 23,000 Items occurring during the Period 1,000 Shares Common Stock (Issued and Sold at $1.00 Par) Accounts Receivable Increase Cost of Good Sold Dividend Declared and Paid Net Income Revenue Treasury Stock bought back at Par 75 30,000 50,000 500 Ending Total Equity 4. If the Ending Inventory of a firm is understated by $72,000, by how much and in what direction will the firm's operating Income be misstated? Under/Overstated Amount 5. The users of Accounting Information Include: a. Management b. Investors / Shareholders c. Employees d. All of the Above 6. What was created from the Sarbanes Oxley Act of 2002 a. All firms public or private must follow International Accounting Standards b. The Public Companies Accounting Oversight Board was created c. If a Firms Capital Ratio increases above 25% the firm must cease to exist d. Loosened regulations on Internal Controls 7. The Independent Auditors Report: a. Expresses a Statement of Fact as to the accurateness of the Financials b. Does not have a Scope Paragraph describing the work completed. c. Usually performed by Infernal Employees d. Expresses an Opinion on material misstatements of the Financials 8. The Following Information was available for the year ended 12/31/2019 Net Sales Cost of Goods Sold Average Accounts Receivable for year Accounts Receivable at year-end Average Inventory for year Inventory at end of year 958,230.00 651.525.00 13,050.00 28.875.00 195,300.00 166,005.00 Required: Answer the following questions, show work, and round to 2 decimal places a. What is the Inventory Turnover for the Year b. What's the number of Days' Sales in Inventory for 2019 using year-end Inventories? c. What's the Accounts Receivable Turnover for 2019? d. What's the Average Collection Period on Accounts Receivable? 9. An Accrual is where a firm pre-pays for an Asset and expenses over time? a. True b. False 10. Firms that use the LIFO Inventory Cost Flow Method: a. Will have lower Cost of Goods Sold b. Will have higher Net Income c. Will pay less taxes in the current year d. Will have more supplies during the lockdown