4 Par State U ss No f Fin e) f) d) c) b) 7) Page 14 of 19 Problem Set #2 Complete the table below for Pastrnak Specialty Products Co. based on the results of your (1 point per column= 3 points) computations above. 6) Net Sales Revenue Cost of Goods Sold Gross Profit Weighted- Average FIFO Presented below are eight questions about Pastrnak Specialty Products Co. and its choice of inventory methods. Respond to each question by writing an "X" in the box under the method that is the best answer to the question. (1/2 points per item = 4 points) Which method would the company have used if it wanted to report higher profits in its income statement? Which method would the company have used if it conserve cash by saving on income taxes? anted to Which method would the company NOT have been allowed to choose if it prepared its financial statements using IFRS? Which method would the company have used if it wanted to report the most realistic balance sheet amount? Which method would the company have used to best match expenses against revenues? Which method would the company have used if it wanted to appear more successful to its investors? Which method would the company have used if its balance g) sheet and related-ratios were becoming more distorted over time? Which method would the company have used if it always h) wanted to report a middle value for inventory and cost of goods sold? LIFO Weighted- Average FIFO LIFO fem roblem

inventory methods. Respond to each question by item =4 points) a) Which method would the company have used if it wanted to b) Which method would the company have used if it wanted to canserve cash by saving on income taxes? c) Which method would the company NOT have been allowed to choose if it prepared its financial statements using IFRS? d) Which method would the company have used if it wanted to report the most realistic balance sheet amount? e) Which method would the company have used to best match expenses against revenues? f) Which method would the company have used if it wanted to appear more successful to its investors? Which method would the company have used if its balance g) sheet and related-ratios were becoming more distorted over time? Which method would the company have used if it always. wanted to report a middle value for inventory and cost of goods sold