Esquire Corp. uses the periodic inventory system. During its first year of operations, Esquire made the following purchases (in chronological order of acquisition): 20 units at $50 35 units at $40 85 units at $30 Sales for the year totaled 135 units, leaving 5 units on hand at the end of the year. Ending inventory using the average cost method is a) $150 b) S177 c) $250 d) $1,540 2. A company reports the following information as of December 31 Sales revenue Cost of goods sold Operating expenses Foreign currency translation adjustment S350,000 $150,000 $110,000 S 25,000 Ignoring income taxes, what amount should the company report as net income as of December 3112 a) $90,000 b) $125,000 c) $150,000 d) $115,000 3. If a company has declared bankruptey, its financial statements likely violate: a) The fair value measurement approach. b) The present value measurement approach. c) The stable monetary unit assumption. d) The going concern assumption. 4. Red Builders agrees to construct a new building for Blue Co. for a total contract price of $6,000,000. The estimated construction costs at inception was $4,000,000. The construction project was completed after two years. Below are the actual costs for years 1 and 2