At January 1 (beginning of its fiscal year), Freeman, Incorporated, a financial services consulting firm, reported the following account balances (in thousands, except for par and market value per share): a. Received $12,500 cash for consulting services rendered. b. Issued 40 additional shares of common stock at a market price of $135 per share. c. Purchased $940 of office equipment, paying 25 percent in cash and owing the rest on a short-term note. d. Received $1,040 from clients for consulting services to be performed in the next year. e. Bought $770 of supplies on account. f. Incurred and paid $2,250 in utilities for the current year. g. Consulted for clients in the current year for fees totaling $1,920, due from clients in the next year. h. Recelved $3,480 from clients paying on their accounts. i. Incurred $6,510 in salaries in the current year, paying $5,750 and owing the rest (to be paid next year). 1. Purchased $1,530 in short-term investments and paid $950 for insurance coverage beginning in the next fiscal year, k. Recelved $25 in interest revenue eamed in the current year on short-term investments. Chapter 7 - In class aractice Inferring Purchases Using the Cost of Goods Sold Equation LO7-1 comsany's bushess condists of providrg menchandive and serices to contumers through prevaus year of \$2.AS milion Required Dewiop a reasonable esimaio of the morchandiss purchisis for the ysar. Seloct whiether the FiFO or LFO mventory conting method nonnaly produces sodh of the fallowirg eflects under the listed cicutisisnoen. Dectining Costs: Highest Net incame: Highest lroventory: Rising Costs: Hoheet Net lncorte: Highest Inventory