560 Chapter 10 Sell the cars to a used car lot at a much reduced price, likely around 40% below sticker Put the cars up for auction KR has not tried thisbefore and has no history of how the cars might sell There is some limited evidence that indicatestat excited buyers might buy the car for sticker price. The current selling costs are $500 per car and KR uses a 15% profit margin in its LCM KR paid $23000 per car for the Kaminators that are on the lot.The replacement cost of these cars is S20.000 Per car What is the most appropriate write-down amount.ifany, for the Kaminators Outline your thought process as well as the judgment(e) you made in reaching this condasion. Financial Statement Analyses Cases X Case LEO to FIEO Conversion and Comparison between Companies Kimberly Clark Corporation and Procter Gamble Company reported the information below about inven tory in their financial statements and footnotes. Use this information to answer the following questions: a what cost-flow assumptions) does Kimberly-Cark b. What is Kimberly-Clark's URO reserve at the end of 20 2012, and 2013? c. If Kimi berly Clark used the FIPO cost-flow assumption to account for all of its inventory, what would its balance of ending inventory be in 2001 2012, and 2013? d. What would Kimberly-Clark's cost od goods under FIFO have been in 2012 and 2013 e would Kimberly-Clark's gross profit, taxes, and net income have been higher or lower under FIFO in 2012 and 2013 f Compare Kimlerly-Clark's gross profit percentage, inventory turnover ratio and days in inventory hand under LIFOversus FIFO for 2012 and 2013 g what cost-flow assumptionlis)doesProcter Gamble use? h. For fiscal 2013 compare Procter d Gamble's inventory turnover ratio and daysin inventory on hand to those of Kimberly-Clark under FIFO from part E Kimberly-Clark Corporation Excerpt from 2013 Annual Report, Kimberly-Cla rk Corporation KIMBERLY CLARK CORPORATION AND SUBSIDLARIES Years Ended December 31 Millions of dollars) 2013 2012 2011 Net Sales $21,063 $20,816 Cost of products sold 3,912 4,314 7240 6,152 Policies (excerp) ng nventories and Distribution Costs Most US inventories are valued at the lower of cost using the Last-n First-out IUFO method or market. The balance of the US. consolidated operations outside the US. are valued at the lower of cost, using either the First-n First-out IFIFO or moving average cost meth- ods, or market. Distribution costs are classned as cost of products sold