Discussions with Te Master management team indicate they believe moving server Inverter costing method is ap kopriates the import and sell many thousands of vehicles tortalen throughout Austratiu. They claim they sell batches of vehicles to retailers which are representative of the stock they have available and therefore the moving average inventory conting methods appropriate. However, closer inspection of the storage grounds reveals there are many thanks of small to medium vehicles in stock, however almost no family friendly SUVs Isport utility vehicles Demand for SUVs has increased significantly during the pandemic as vehicle buyers spend more on SUVs for domestic holidays, rather than overseas holidays. Further discussion with management reveals that they sell all SUVs to retailers as soon as they arrive in the country, including the new 3000 edition Safari Cruiser, however other products can sit many months in the storage grounds SUVS cost significantly more than small to medium vehicles. As with any vehicle. each has its own VIN which stands for "Vehicle Identification Number". Accordingly ToyoMaster is able to easily identify each vehicle they have in stock and how much it cost to purchase and import each vehide Please answer each part of the question as follows: 1. Do you think ToyoMaster is attempting to engage in earnings management? Why or why not? Please support your opinion with evidence from the case. (5 marks) 2. Is the decision of ToyoMaster to continue using the Moving Average inventory costing method ethical? Why or why not? (2 marks) Question 6.2 Advise ToyoMaster on what you think is the most appropriate Inventory costing method to determine the cost of goods sold and describe why this method is the most appropriate. Choose at least two relevant principles, assumptions, qualitative characteristics, generally accepted accounting principles, and/or accounting standards (relevant theory), describe them, and explain how they support your choice of method. Answer this question in the following format: 1. The most appropriate inventory costing method to determine the cost of goods sold is....11 mark) 2. The first relevant theory which supports the choice of this method is.... (describe theory) 12 marks) 3. This theory supports the choice of method by... (explain how this theory supports your choice of method) (2 marks) 4. The second relevant theory which supports the choice of this method is.... (describe theory) 12 marks) 5. This theory supports the choice of method by... (explain how this theory supports your choice of method) (2 marks) Edit View Insert Format Tools Table Question 49 8 pts Question 6.3 Describe three ways to analyse ToyoMaster's financial performance (reported in the income statement). If you need additional information beyond that presented in the income statement in this question to analyse the financial performance, please specify. Describe a potential concern you have about ToyoMaster's financial performance and how your proposed analysis will provide an indication about whether this concern is valid Answer this question in the following format: 1. Describe method one to analyse financial performance (2 marks) 2. Describe method two to analyse financial performance (2 marks) 3. Describe method three to analyse financial performance (2 marks) 4. Describe a concern and how analysis (above) will provide an indication of this concern (2 marks) Edit View Insert Format Tools Table Question 50 2 pts Question 6.4 Describe one form of management accounting information you would like to see to help you to decide whether to invest in ToyoMaster. (2 marks) Edit View. Insert Format Tools Table 12pt Paragraph e Tv Discussions with Te Master management team indicate they believe moving very costing method is an opriate the import and sell many thousands of vehicles to make throughout Australia. They claim they sell batches of vehicles to retailers which are representative of the stock they have available and therefore the moving average inventory conting methods appropriate. However, closer inspection of the storage grounds reveals there are many thousands of small to medium vehicles in stock, however almost no family friendly SUVs (sport utility vehicles Demand for SUVs has increased significantly during the pandemic as vehicle buyers spend more on SUVs for domestic holidays, rather than overseas holidays. Further discussion with management reveals that they sell all SUVs to retailers as soon as they arrive in the country, including the new 3000 edition Safari Cruiser, however other products can sit many months in the storage grounds SUVS cost significantly more than small to medium vehicles. As with any vehide. each has its own VIN which stands for "Vehicle Identification Number". Accordingly ToyoMaster is able to easily identify each vehicle they have in stock and how much it cost to purchase and import each vehide Please answer each part of the question as follows: 1. Do you think ToyoMaster is attempting to engage in earnings management? Why or why not? Please support your opinion with evidence from the case. (5 marks) 2. Is the decision of ToyoMaster to continue using the Moving Average inventory costing method ethical? Why or why not? (2 marks) Discussions with Te Master management team indicate they believe moving server Inverter costing method is ap kopriates the import and sell many thousands of vehicles tortalen throughout Austratiu. They claim they sell batches of vehicles to retailers which are representative of the stock they have available and therefore the moving average inventory conting methods appropriate. However, closer inspection of the storage grounds reveals there are many thanks of small to medium vehicles in stock, however almost no family friendly SUVs Isport utility vehicles Demand for SUVs has increased significantly during the pandemic as vehicle buyers spend more on SUVs for domestic holidays, rather than overseas holidays. Further discussion with management reveals that they sell all SUVs to retailers as soon as they arrive in the country, including the new 3000 edition Safari Cruiser, however other products can sit many months in the storage grounds SUVS cost significantly more than small to medium vehicles. As with any vehicle. each has its own VIN which stands for "Vehicle Identification Number". Accordingly ToyoMaster is able to easily identify each vehicle they have in stock and how much it cost to purchase and import each vehide Please answer each part of the question as follows: 1. Do you think ToyoMaster is attempting to engage in earnings management? Why or why not? Please support your opinion with evidence from the case. (5 marks) 2. Is the decision of ToyoMaster to continue using the Moving Average inventory costing method ethical? Why or why not? (2 marks) Question 6.2 Advise ToyoMaster on what you think is the most appropriate Inventory costing method to determine the cost of goods sold and describe why this method is the most appropriate. Choose at least two relevant principles, assumptions, qualitative characteristics, generally accepted accounting principles, and/or accounting standards (relevant theory), describe them, and explain how they support your choice of method. Answer this question in the following format: 1. The most appropriate inventory costing method to determine the cost of goods sold is....11 mark) 2. The first relevant theory which supports the choice of this method is.... (describe theory) 12 marks) 3. This theory supports the choice of method by... (explain how this theory supports your choice of method) (2 marks) 4. The second relevant theory which supports the choice of this method is.... (describe theory) 12 marks) 5. This theory supports the choice of method by... (explain how this theory supports your choice of method) (2 marks) Edit View Insert Format Tools Table Question 49 8 pts Question 6.3 Describe three ways to analyse ToyoMaster's financial performance (reported in the income statement). If you need additional information beyond that presented in the income statement in this question to analyse the financial performance, please specify. Describe a potential concern you have about ToyoMaster's financial performance and how your proposed analysis will provide an indication about whether this concern is valid Answer this question in the following format: 1. Describe method one to analyse financial performance (2 marks) 2. Describe method two to analyse financial performance (2 marks) 3. Describe method three to analyse financial performance (2 marks) 4. Describe a concern and how analysis (above) will provide an indication of this concern (2 marks) Edit View Insert Format Tools Table Question 50 2 pts Question 6.4 Describe one form of management accounting information you would like to see to help you to decide whether to invest in ToyoMaster. (2 marks) Edit View. Insert Format Tools Table 12pt Paragraph e Tv Discussions with Te Master management team indicate they believe moving very costing method is an opriate the import and sell many thousands of vehicles to make throughout Australia. They claim they sell batches of vehicles to retailers which are representative of the stock they have available and therefore the moving average inventory conting methods appropriate. However, closer inspection of the storage grounds reveals there are many thousands of small to medium vehicles in stock, however almost no family friendly SUVs (sport utility vehicles Demand for SUVs has increased significantly during the pandemic as vehicle buyers spend more on SUVs for domestic holidays, rather than overseas holidays. Further discussion with management reveals that they sell all SUVs to retailers as soon as they arrive in the country, including the new 3000 edition Safari Cruiser, however other products can sit many months in the storage grounds SUVS cost significantly more than small to medium vehicles. As with any vehide. each has its own VIN which stands for "Vehicle Identification Number". Accordingly ToyoMaster is able to easily identify each vehicle they have in stock and how much it cost to purchase and import each vehide Please answer each part of the question as follows: 1. Do you think ToyoMaster is attempting to engage in earnings management? Why or why not? Please support your opinion with evidence from the case. (5 marks) 2. Is the decision of ToyoMaster to continue using the Moving Average inventory costing method ethical? Why or why not? (2 marks)