Determining the Financial Statement Impact of Lifo Liquidations Dickhaut Corporation imports and sells a product that is produced in the Dominican Republic. In the summer of Year 8, a hurricane disrupted production and affected Dickhaur's supply of this product. Dickhaut uses Lifo to determine the cost of its imventory and cost of goods sold, On January 1, Vear 8 , Dickhaut's imventory of this product consisted of the following Through mid-December, purchases were limited to 5,600 units, because the cost had increased to $70 per unit. Dickhaut sold 9,200 units during Year 8 at a price of 365 per unit, which significantly depleted its inventory. However, the cost was expected to drop to $55 per unit by early 1 anuary Year 9 Required a. Assurve that Dickhaut mahes no further purchases during Year 8 Compute its gross profic for Year 8 . Note Oo not use a negative sign with your cost of goods sold amount. b. Assume that Oickhaut purchases 3,600 units for $70 per unit before the end of Decernber Year 8 , so that it maintains its balance of inventory at 4,000 units. Compute its gross profit for Year B. Note: Do not use a negative sign with your cost of goods sold amount. c. How should Dickhaut disclose the LFO liquidation if it chooses not to make a year end purchase? Disclowienote: Gross proficmal due to LFO liquidation. d. If ichasuts corporate tax rate is 25%, should ic make a year-end purchase? if so, how mamy units should the company purchuse before December 31 , Year B? Assurne that the management of Dickhaut believes it is efficient (n the long run) to carry 4,000 units in inventory. For this anlysis, calculate total cash flows assuming (a) no purchases, (0)3,600 units of purchases, and (c) 1,200 units of purchase. Note: Use a negative shn to indicate a cash outflow in the schedule that follows. d. If Dickhaut's corporate tax rate is 25% should it make a year-end purchase? if so, how many units should the compary purchase before December 31 , Year 8 ? Assume that the managernent of Dickhaut believes it is efficient (in the long run) to carry 4000 units in inventory. For this analysis, calculate total cash floms assaming (a) no purchases, (b) 3,600 units of purchases, and (c) 1,200 units of purchase. Note: Use a negative sign to indicate a cash outflow in the schedule that follows. units should be purchased before year-end based on the cash flow analysis provided in the schedule above