a$.$ Identify the upstream and downstream costs.

b$.$ Determine the year $1$ amount of cost of goods sold and the ending inventory

balance that would appear on the financial statements that are prepared in

accordance with GAAP.

c$.$ Determine the sales price assuming that Franklin desires to earn a profit

margin that is equal to $25$ percent of the total cost of developing, making,

and distributing the batteries.

d$.$ Prepare a GAAP$-$based income statement for year $1.$ Use the sales price

developed in Requirement $c.$

Complete this question by entering your answers in the tabs below.

Prepare a GAAP$-$based income statement for year $1.$ Use the sales price developed

Note: Do not round intermediate calculations.